Concerns over American debt led to a wobble in global stock markets yesterday, and this issue is likely to remain a major concern for investors in the coming weeks.
It is worth noting that Moody's downgraded the American debt rating last Friday after the trading session closed, which already raised concerns among investors, but without any significant impact on the markets.
However, the yield on the 10-year Treasury bond began to rise yesterday, peaking at 4.61% on Wednesday, the highest level since February 13.
In addition to Moody's downgrade of the American debt rating, this rise in American yields also came in response to the weak success of the U.S. Treasury bond issuance, which is particularly concerning according to some observers, including Robert Kiyosaki, the author of the bestselling book 'Rich Dad, Poor Dad'.
In a post on X, starting with the phrase 'the end is here', Kiyosaki stated that 'the Federal Reserve held an auction for American bonds and no one showed up'.
He stated that this means 'the Federal Reserve quietly bought $50 billion of its fake money with fake money'.
From his perspective, this means that 'the party is over' and that hyperinflation is on the horizon. The author warned that 'millions of people, young and old, will be financially wiped out'.
As usual, he also sent a message of hope, indicating that those who know how to position themselves will be able to emerge from the upcoming tough times.
Indeed, Kiyosaki estimated that the current context could see gold reach $25,000, silver $70, and Bitcoin between $500,000 and $1 million.
Finally, it is worth noting that there is no official information confirming that the Federal Reserve itself purchased $50 billion in American bonds, as Kiyosaki claims.
On the other hand, it is clear that the debt and the American deficit worry the creditors of the world's leading economy and harm the dollar's status as the world's reserve currency, ultimately reducing the demand for American bonds.