Analysis: Debt-laden world, rising bond yields – a toxic taper tantrum combo

Reuters/Dhara Ranasinghe and Karin Strohecker

Repost from 2-22-2021

cartoon image of someone digging a hole“In May 2013, bond investors threw a tantrum after hints the U.S. Federal Reserve might slow the money-printing presses. A similar selloff now, with another $70 trillion added to global debt, could prove to be far more vicious.”

USAGOLD note:  The first law of holes applies here, i.e., “when you’re in one stop digging” – but the Fed is in no position to do otherwise. If it does, the reaction likely will be “vicious,” as the authors of this piece worry.

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