Will The US Debt Get Worse?
https://www.youtube.com/watch?v=JodvZUzoQi0
Language: en | ASR: large-v3-turbo @ 0a363e9161cbc7ed1431c9597a8ceaf0c4f78fcf

[00:00:00.000 --> 00:00:03.700] Speaker 1: If the debt can't be canceled and it's not going to be paid off, well then is this just
[00:00:03.700 --> 00:00:07.960] Speaker 1: slowly going to keep getting worse or will something actually break? I want to show you a
[00:00:07.960 --> 00:00:12.520] Speaker 1: tweet from someone who spent 30 years trading U .S. interest rates, but his answer is yes,
[00:00:12.740 --> 00:00:18.080] Speaker 1: this breaks and probably very soon. The 30 -year rate is at 5 .6 % right now. He says that
[00:00:18.080 --> 00:00:23.020] Speaker 1: we will soon see 6%, maybe 7%, and within the next six months, we find out what it looks
[00:00:23.020 --> 00:00:26.920] Speaker 1: like when the treasury market breaks. His whole argument basically comes down to this idea
[00:00:26.920 --> 00:00:30.640] Speaker 1: of what's called a fulcrum, right? The fulcrum is the point in the middle that everything
[00:00:30.640 --> 00:00:35.740] Speaker 1: sort of balances on. Now, in the financial system, that is the U .S. Treasury market, aka
[00:00:35.740 --> 00:00:40.900] Speaker 1: the bond market. Every loan, every mortgage, every stock price depends on it. And his rule
[00:00:40.900 --> 00:00:46.460] Speaker 1: as a trader is that you never mess with this fulcrum. But we did. How is the U .S. stock
[00:00:46.460 --> 00:00:51.780] Speaker 1: market worth more than every market in the world combined? His answer is the U .S. got
[00:00:51.780 --> 00:00:56.200] Speaker 1: access to cheap money, leaning on the bond market, which was effectively fueled by the most
[00:00:56.200 --> 00:01:01.420] Speaker 1: rock -solid stable asset in the world, real estate. So the bond market holds up everything.
[00:01:01.720 --> 00:01:04.600] Speaker 1: And who was holding up the bond market? For a long time, it was China.