Bond Yields Just Hit a 2007 High... Every Buyer Became a Seller

The U.S. economy faces a severe downturn masked by misleading employment data and unsustainable fiscal policies. August’s nonfarm payroll report, while touted as a significant beat, relies on a flawed birth-death model and is likely to face substantial downward revisions. The nation’s massive national debt and persistent trade deficits render it a deteriorating credit risk, forcing the Federal Reserve toward inflationary measures to maintain solvency. Protectionist tariffs act as direct taxes on American consumers, and threats to ban trade with surplus nations would only accelerate economic collapse. As bond yields hit multi-year highs, the ongoing bear market in debt signals a loss of confidence in government creditworthiness. Consequently, physical gold and silver remain critical assets for investors seeking to hedge against the inevitable erosion of the dollar and the failure of current economic management.