BY PHOENIX CAPITAL RESEARCH WEDNESDAY, SEP 28, 2022 - 8:57 By Graham Summers, MBA
The financial system is beginning to break.
The Bank of England (BoE) is now the first major central bank to lose control of its respective bond and currency markets.
Last week, the new government in the U.K. introduced a series of tax cuts to stimulate the economy. British government bonds, also called Gilts, responded by imploding. The yield on the 10-Year British Gilt rose from 3.2% to over 4.4% in a single week.
This is what it looks like when a bond market begins to fail.
As I keep stating, the Great Crisis… the one to which 2008 was a warm-up, has finally arrived. In 2008 entire banks went bust. In 2022, entire countries will do so.
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