A global reset is coming...?

Rising 10-year and 30-year Treasury yields are significantly increasing borrowing costs for both the U.S. government and consumers, creating a precarious economic environment. With national debt surpassing $40 trillion, the government faces a critical dilemma: lowering rates to ease debt servicing risks fueling inflation, while maintaining high rates threatens job market stability. The Treasury Department has responded by aggressively buying back its own bonds to cap yields, yet these efforts often conflict with the Federal Reserve’s dual mandate of price stability and full employment. Geopolitical instability, specifically the impact of ongoing conflicts on global oil supplies, further complicates inflation control. As traditional monetary policy tools reach their limits, the potential for a significant global economic reset is emerging as a necessary, albeit uncertain, strategy to address the unsustainable trajectory of the current debt-based financial system.