#415 Dr. Mark Thornton: The Bond Market Is Flashing a Warning Nobody in Washington Wants to Fix

<p>Dr. Mark Thornton, Senior Fellow at the Mises Institute, joins Julia to explain why the bond market is the pivotal story right now. The 10- and 30-year Treasury yields are back above 5%, the national debt is over $40 trillion, and deficits are running at about $2 trillion a year. Thornton argues that this is wartime-level borrowing during supposedly good times. It crowds out private investment, weighs on wages, and widens the K-shaped divide between asset owners and everyone else. He explains why he thinks the Fed&#39;s recent hike won&#39;t be its last. In his view, Chairman Warsh and Secretary Bessent are managing the problem rather than solving it, and a market break or crisis could give the Fed cover to restart money printing. He describes the US as merging onto the &quot;highway to hyperinflation,&quot; draws on historical cases from Revolutionary France to Weimar Germany, and closes with why he expects hard assets and commodities to outperform financial assets over the next decade.</p><p><br></p><p>Thank you to our partners </p><p><strong>Augusta Precious Metals </strong>— To learn more, visit <a href="https://juliabuysgold.com/" target="_blank">https://juliabuysgold.com/</a> or text “Julia&quot; to 35052</p><p><strong>Monetary Metals</strong> - learn more at https://www.monetary-metals.com/julia/</p><p><br></p><p>Links</p><p>X: <a href="https://www.youtube.com/redirect?event=video_description&redir_token=QUFFLUhqbUFobXBtRlJrOXZ6S2VTLU5RUU1FZllTcE1yZ3xBQ3Jtc0ttZ1V5MlJUT0Zsc3VuT2ZiT1ZUZVhuczlQOEdHQVlNZWc3NnQ3Q2E0WFZlamFwNW83RVFNMTh3ZjEwbDFPd2FpUndrWjV0YlBFdmt3R2FKMU1IRVdRckl6VkJxVXdHN2ZMQkkwZTFjSzA5TGoyX2JYcw&q=https%3A%2F%2Fx.com%2FDrMarkThornton&v=zfW5Vp4kvk4" target="_blank">https://x.com/DrMarkThornton</a></p><p>Free Hayek book: https://store.mises.org/Hayek-for-the-21st-Century-P11367.aspx</p><p>Mises Institute: https://mises.org/profile/mark-thornton</p><p><br></p><p>Timestamps: </p><p>0:00 Intro: Why bonds are the big worry</p><p>0:43 Big picture: 10- and 30-year yields at 25-year highs</p><p>4:24 Are we in a new higher-rate regime?</p><p>11:48 Wartime deficits in &quot;good times&quot;</p><p>18:21 Who wins and who loses from easy money</p><p>20:25 Young people, housing, and the K-shaped economy</p><p>24:02 Food, energy, and the Persian Gulf conflict</p><p>28:10 Are we on the on-ramp to hyperinflation?</p><p>34:03 Fed rate hikes: more coming, and what&#39;s next</p><p>39:27 No consequences: the &quot;magic checkbook&quot;</p><p>47:28 How to