The United States 10-year government bond yield reached a low of 3.6% in September but has rapidly creeped up to 4.2%, erasing all the rate cut impact. The primary cause is the out-of-control public spending and the lack of confidence among bond investors in the government’s ability to manage its public finances. Therefore, it is logical that investors fear an inflation bounce.
The United States’ government is obsessed with doping GDP with government spending and bloating job figures with public sector hires. This is the road to ruin or stagflation.
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