Analysts Say an Onslaught of Fed Rate Hikes Could Spur a ‘Bond Market Flash Crash’ or ‘Blow up the Treasury’ – Economics Bitcoin News

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The founder of the hedge fund Praetorian Capital, believes the onslaught of Fed rate hikes could very well 'blow up the Treasury.' Economics Inflation

that a “U.S. Treasury bond market flash crash is inevitable under these market conditions.” Speaking about the financial weapons of mass destruction, Kim details how the perception of a mass decrease in global derivatives since 2008 is an illusion.If you assume the perspective that bankers have cut their positions in these extremely risky products that can collapse like a procession of dominoes if one large bank defaults on any major category of these derivatives, you would be wrong.

“While the ECB seems to be keeping their end of the bargain in not imploding this critical derivative market, U.S. central bankers have not,” Kim’s blog post notes. “If the Feds really go rogue in continuing to drive the USD strength against all other major global fiat currencies higher, not only will this possible create illiquidity in the largest bond market in the world, U.S. Treasuries, but it may cause massive defaults in the USD denominated interest rate derivative market as well.

 

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the economy has long been doomed to collapse, it is better to stock up on lifeboats in the form of BITCOIN and Tether otherwise you can drown

Why you not talking about this!

Why you not talking about this!

How come everyone is silent on this

Why you not talking about this!

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