Egon von Greyerz: “Eric, I’m looking at the bond markets, worldwide. What we’ve seen now both in the U.S. and in Germany is that rates have increased pretty fast in the last few weeks….
“If you take the U.S. 10-Year Treasury, for example, it has gone from 1.6 percent to 2.2 percent. Well, that’s a 40 percent increase in yields. We have seen a similar move in German bunds.
Tens Of Trillions Of Dollars At Risk
To me this is an indication that investors are worrying about risk because the bond market is the biggest bubble in the world. Here you have major industrialized nations and regions such as the U.S., EU and Japan, issuing bonds that will never be repaid. That is absolutely guaranteed. And we are talking about massive markets — tens of trillions of dollars.
I’ve always said that governments will not move the short-rates higher, not even in the United States. They simply cannot afford to do that. Every single industrialized economy is under pressure, so they cannot increase short-term rates. But investors will increase the long rates by selling the bonds and that’s what’s happening now..."
at http://kingworldnews.com/losses-will-be-devastating-triggering-a-derivatives-blow-up-and-worldwide-collapse/
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