The Biggest Currency Reset in US History JUST Started.
The video discusses the impending financial challenges facing the U.S. government as nearly $10 trillion in debt comes due within the next year, which could significantly impact the economy. With the term premium rising, long-term bond yields may increase, potentially reaching 6%, thereby straining the government's budget. In response, the Federal Reserve has resumed purchasing Treasury bonds to stabilize the market and mitigate the effects of reduced private investor demand.
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In the next 12 months, nearly $10 trillion of US government debt is coming due, which is about $830 billion per month, representing 34% of all outstanding US government debt.
The term premium, which reflects the extra yield investors demand due to uncertainty in the Treasury market, has increased from negative 1.2% to almost 0.75%, and if it reverts to its 60-year average of around 2%, long-term bond yields could rise to 6%, significantly squeezing the US government's budget.
The Federal Reserve has begun purchasing US Treasury bonds again, with plans to buy $40 billion worth per month, effectively capping bond yields and replacing missing demand from private investors.
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