The national debt is now over $29 trillion, the vote just passed the US congress and senate to raise the debt ceiling by $2.5 trillion. The bond market is bloated to $33 trillion (It did not exist before 1982). CPI inflation is now 6.8%, and wage growth in the US now averages 4.8%.
To top it all off, the US Fed just announced that $30 Billion per month will be tapered. 3 rate hikes in 2022 and 3 more in 2023. Higher rates will gut the economy, click here to view on twitter.
NIRP appears never ending as this next chart demonstrates. Long Bond rates are going negative when CPI is factored in. Rate hikes to stem that in 2022 and 2023 will drag down stocks and real estate prices. It may take two years to fully play out. Here is the chart below:
When the red line is high (bond market debt) and the black line is low (long term bond rates). That is bad, thus the tapering and rate hikes for 2022, and 2023.
Now long term, what impact will this have?
Before we answer that, this next chart is pretty funny. The Bank of England has said Bitcoin could go to zero. This chart below is the British pound priced in Bitcoin:
Another funny chart, but not really. IS China property giants and their crashing stocks. The US bond market is $33 trillion. Yet these China real estate giants stocks, are tanking! China Evergrande is a $300 Billion bankruptcy. They have missed their bond payments and defaulted! This will not end well: