How Rising Bond Yields Reach Your Mortgage and Savings

<p>In 1993, James Carville said he wanted to come back as the bond market, because it can intimidate everybody. A year later it proved him right. Rates jumped, and Orange County, California, went bankrupt after its treasurer bet they would stay low.This quarter, US borrowing costs rose about as fast as in any quarter since then. The 10-year Treasury yield went from 4.44% at the end of June to 5.29% at the end of September, and briefly touched 5.34% on 1 October, the highest since 2002.You feel that even if you never buy a bond, because the Treasury rate is the floor that mortgages, car loans and business loans are priced from. The government itself is like a family whose mortgage keeps resetting higher. It owes over $40 trillion, pays about 3.5% on average, and new 10-year money now costs more than 5%. It already spends more on interest than on defense.In this video I go through the four ways a government can find that money, who ends up paying in each case, and why the fourth one, letting the money quietly lose its value, doesn&#39;t exist for Bitcoin.Chapters0:00 The bond market can intimidate everybody1:01 The question1:17 What a bond is1:57 What just happened to yields2:43 Why it reaches you3:34 The government&#39;s mortgage4:37 Four ways out5:55 How inflation pays a debt8:13 Tied to the mast8:56 Bitcoin&#39;s fixed supply9:32 Back to 1994My website: https://www.bitcoinadvisory.co/Not financial advice.</p>