Here Comes The Great Unwind

The collapse of unbacked credit value was only a matter of time, which is now rapidly approaching. The Great Unwind is underway. US Treasury bond yields are set to surge, contradicting the prevailing belief they’d stabilize or drop. This mirrors the end of the post Bretton Woods era and the shift towards tangible-backed credit. The “Great Unwind” looms due to long-standing monetary imbalances, with capital fleeing the dollar, leading to a US funding crisis. Global bonds, including Eurozone and UK gilts, show similar worrisome patterns. Those banking on declining interest rates might face stark disappointments as the currency and dependent credit must be sound.