{"id":63907,"date":"2022-10-23T16:55:00","date_gmt":"2022-10-23T21:55:00","guid":{"rendered":"https:\/\/olduvai.ca\/?p=63907"},"modified":"2022-10-23T16:55:00","modified_gmt":"2022-10-23T21:55:00","slug":"how-bernanke-broke-the-world","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=63907","title":{"rendered":"How Bernanke Broke The World"},"content":{"rendered":"<header class=\"ArticleFull_header__Eyn7V\">\n<h3 class=\"ArticleFull_title__MEgbb\"><a href=\"https:\/\/www.zerohedge.com\/markets\/how-bernanke-broke-world\">How Bernanke Broke The World<\/a><\/h3>\n<\/header>\n<div class=\"NodeContent_mainContent__t4rGu\">\n<div class=\"NodeContent_body__6iJOI NodeBody_container__hI8PI\">\n<ul>\n<li>THE BIGGEST BUBBLE IN HISTORY DEFLATES<\/li>\n<li>YOUR STANDARD OF LIVING IS GOING TO FALL IN HALF<\/li>\n<\/ul>\n<p>Soon, you\u2019ll wake up to hear reports on CNBC and Twitter about ATM machines not working across the country.<\/p>\n<p>JPMorgan Chase CEO Jamie Dimon will appear on CNBC, to explain that for the good of the country, his bank and all the other banks in the country are buying long-dated Treasury bonds. And, to protect America, it\u2019s important that we all take a pause and stop withdrawing cash from the system, which means a \u201ctemporary\u201d shutdown of other banking operations for a week or two.<\/p>\n<p>It will happen. It\u2019s unavoidable.<\/p>\n<p>A couple of interesting facts\u2026<\/p>\n<p>The price of U.S. Treasury bonds is collapsing. Since the end of July, the 10-year Treasury rate has risen sharply, from a yield of 2.65% to over 4.3% now.\u00a0<strong>There haven\u2019t been bigger losses in the U.S. Treasury bond market,\u00a0<em>EVER.<\/em><\/strong><\/p>\n<p><em>[ZH: The 1-year drawdown of US Equity and Treasury Market Cap is $14 Trillion,<a href=\"https:\/\/www.zerohedge.com\/markets\/pain-trade-upside-10-reasons-goldmans-trading-desk-november-meltup\"><strong>\u00a0the largest draw that we have ever seen in absolute terms&#8230;<\/strong><\/a>]<\/em><\/p>\n<p><a href=\"https:\/\/www.zerohedge.com\/s3\/files\/inline-images\/equity%20and%20treasury%20market%20cap_0.png?itok=ege2PP_o\" data-image-external-href=\"\" data-image-href=\"\/s3\/files\/inline-images\/equity%20and%20treasury%20market%20cap_0.png?itok=ege2PP_o\" data-link-option=\"0\"><picture><img loading=\"lazy\" decoding=\"async\" class=\"inline-images image-style-inline-images\" src=\"https:\/\/assets.zerohedge.com\/s3fs-public\/styles\/inline_image_mobile\/public\/inline-images\/equity%20and%20treasury%20market%20cap_0.png?itok=ege2PP_o\" alt=\"\" width=\"500\" height=\"263\" data-entity-type=\"file\" data-entity-uuid=\"b4afe94b-3806-4f23-9930-2389ec61f55c\" data-responsive-image-style=\"inline_images\" \/><\/picture><\/a><\/p>\n<p><strong>Signs of inflation are fading, and the American economy is obviously heading into a severe recession.<\/strong><\/p>\n<p>But rather than stabilizing \u2013 which is what usually happens \u2013 the selloff in longer-dated U.S. Treasury securities is\u00a0<em>intensifying<\/em>, and\u00a0<strong>liquidity is at its lowest levels since March 2020.<\/strong><\/p>\n<p><strong><a href=\"https:\/\/www.zerohedge.com\/s3\/files\/inline-images\/2022-10-23_11-58-27.jpg?itok=w3j39Vpw\" data-image-external-href=\"\" data-image-href=\"\/s3\/files\/inline-images\/2022-10-23_11-58-27.jpg?itok=w3j39Vpw\" data-link-option=\"0\"><picture><img loading=\"lazy\" decoding=\"async\" class=\"inline-images image-style-inline-images\" src=\"https:\/\/assets.zerohedge.com\/s3fs-public\/styles\/inline_image_mobile\/public\/inline-images\/2022-10-23_11-58-27.jpg?itok=w3j39Vpw\" alt=\"\" width=\"500\" height=\"319\" data-entity-type=\"file\" data-entity-uuid=\"2393a119-e96c-463c-9ef7-04bbbbd82900\" data-responsive-image-style=\"inline_images\" \/><\/picture><\/a><\/strong><\/p>\n<p>That suggests that the\u00a0<strong>market doesn\u2019t trust the dollar anymore.\u00a0<\/strong>And that means the entire system is at risk.<\/p>\n<p><a href=\"https:\/\/www.zerohedge.com\/s3\/files\/inline-images\/2022-10-23_11-50-43.jpg?itok=Uaj1-USh\" data-image-external-href=\"\" data-image-href=\"\/s3\/files\/inline-images\/2022-10-23_11-50-43.jpg?itok=Uaj1-USh\" data-link-option=\"0\"><picture><img loading=\"lazy\" decoding=\"async\" class=\"inline-images image-style-inline-images\" src=\"https:\/\/assets.zerohedge.com\/s3fs-public\/styles\/inline_image_mobile\/public\/inline-images\/2022-10-23_11-50-43.jpg?itok=Uaj1-USh\" alt=\"\" width=\"500\" height=\"343\" data-entity-type=\"file\" data-entity-uuid=\"35489d5b-7d21-4869-b383-cecf2c2ccbe0\" data-responsive-image-style=\"inline_images\" \/><\/picture><\/a><\/p>\n<p id=\"m_5857537061082286013payback%E2%80%99s-a-witch\"><strong>Payback\u2019s A Witch<\/strong><\/p>\n<p>The sell-off in long-dated Treasuries isn\u2019t because of last year\u2019s inflation.\u00a0<em>It\u2019s because the market knows that the U.S. Treasury cannot possibly afford a real rate of interest on its massive $31 trillion in debt<\/em>.<\/p>\n<p>\u2026click on the above link to read the rest\u2026<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>How Bernanke Broke The World THE BIGGEST BUBBLE IN HISTORY DEFLATES YOUR STANDARD OF LIVING IS GOING TO FALL IN HALF Soon, you\u2019ll wake up to hear reports on CNBC and Twitter about ATM machines not working across the country. JPMorgan Chase CEO Jamie Dimon will appear on CNBC, to explain that for the good [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[68,124,303,431,534,538,10553,3650,4318],"class_list":["post-63907","post","type-post","status-publish","format-standard","hentry","category-economics","tag-ben-bernanke","tag-central-banks","tag-fed","tag-interest-rates","tag-monetary-policy","tag-money-printing","tag-porter-stansberry","tag-us-federal-reserve","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/63907","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=63907"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/63907\/revisions"}],"predecessor-version":[{"id":63908,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/63907\/revisions\/63908"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=63907"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=63907"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=63907"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}