(Natural News) Right now, the situation with the markets and the financial system at large might be described comparatively as a terminally ill patient barely breathing on a life support machine while attending doctors tell the family that everything looks on the up and up. In other words, the situation is really ugly behind closed doors – but those doors are about to be swung wide open for the world to both see and experience.
Take the ongoing "bond bloodbath," as Wolf Richter calls it. Delusions about the Federal Reserve's fight with inflation are finally giving way as reality sets in that inflation is not going away. It is not transitory like notorious liar Treasury Secretary Janet Yellen kept saying, and there does not really appear to be any way to stop it.
Its the End of the World
As the Fed continues to tighten the system into a steep recession, there will be another dramatic plunge in the markets to correct what Haggith describes as the "everything bubble" – meaning everything is way overvalued to the point that it has to pop at some point.
"That will plunge us rapidly into recession in an all-out panic because people who have been investing based on such enormous delusions panic when they finally realize that, like Wile E. Coyote, they've run out past the edge of a mighty high cliff," he explains.
"The crash of the Big Bond Bubble was inevitable because of the Fed's QT (quantitative tightening) and the Fed's raising of interest rates and the government's massive addiction to endless and enormous deficits, requiring massive new bond issuances."
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