Ray Dalio warns that things are going to be bad… or *very* bad.
He says that the U.S. bond market might be the biggest threat to global financial markets.
In this excerpt, he explains why bond yields are an absolute cornerstone of the markets:
→ When there are no willing buyers of U.S. bonds,
→ yields rise (which means the cost of government debt goes up),
→ the dollar weakens,
→ gold becomes more expensive – capital flees from debt.
The Fed then faces a tough choice:
📈 Allow yields to rise → risk of a recession,
🖨 Or start buying bonds itself (i.e., "print money") → risk of inflation.
What will Powell do?
