I hate to say it but…

This last week has seen articles from Roger Bootle and Allister Heath warning of the consequences of a bursting in the “bond bubble”. Now we have the Bank of England’s Andrew Haldane saying

If I were to single out what for me would be the biggest risk to global financial stability right now, it would be a disorderly reversion in government bond yields globally.

We’ve seen shades of that over the last two to three weeks.

We have intentionally blown the biggest government bond bubble in history. We’ve been vigilant to the consequences of that bubble deflating more quickly than we might otherwise have wanted. That’s a risk we as FPC need to be very vigilant to.”

As I asked on The Commentator last August, Is the bond bubble the biggest yet?

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4 thoughts on “I hate to say it but…

  1. All the major governments ae deopendent (directly or indirectly) on the Central Banks buying their debt (their bonds) with money created from nothing.

    This destroys the market (i.e. voluntary interaction). It will fail, it will collapse – the only question is WHEN?

  2. Pingback: Bank Of England’s Haldane: “We’ve Intentionally Blown The Biggest Bond Bubble In History” – Zero Hedge |

  3. Pingback: Bondpocalypse |

  4. Pingback: Haldane said the FPC was on alert to any bubbles created by the help to buy mortgage guarantee scheme – |

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