Lions…
Bond yields are rising GLOBALLY. (Look this up for yourselves if you do not believe me). This is not just a market fluctuation. It is the sound of Babylon’s foundation cracking.
Click- US Treasury Secretary Scott Bessent is now repeatedly downplaying what the effect of this US debt downgrade means… and that right there should tell you that the problem is in actuality MASSIVE. The ripple effect of this is just beginning, and here’s what’s ALREADY HAPPENING. (Question… Do you trust the US Treasury Secretary Scott Bessent?)
Lets move on… What Bessent won’t tell you.
Borrowing Costs Are Already Rising Across the Board.
The US must now pay more to borrow for Treasuries, infrastructure, entitlements, military, all of it. Every notch lower in credit quality = higher yields demanded by buyers. This “forces” the Fed buy more debt themselves. (This debt downgrade has put the Fed in exactly the spot it wants to be in…) NOW THE FED HAS BEEN GIVEN THE ABSOLUTE GREEN LIGHT TO INFLATE.
RIPPLE EFFECT CONTINUES…
Contagion to States and Cities. Municipal bonds are often priced in relation to Treasury ratings. This US debt downgrade, cities and states will follow… and borrowing at every level tightens. That means pension risk, infrastructure delays, and defaults.
Foreign Holders Will Reevaluate. China, Japan, BRICS nations… they are watching. A downgrade weakens the perception of dollar safety. AND the world is already de-dollarizing and dumping US debt. This could accelerate into a full bond exodus, and if that happens, yields spike explosively. (We have been talking about this for years).
Reserve Currency Status Erosion. A downgrade in US credibility equals a downgrade in trust. That means gold, yuan, and digital assets rise in significance.
Global Markets Begin to Price in Collapse Risk. If US debt can be downgraded, so can the entire Western financial order. Investors will rotate out of risk-on assets, out of debt, out of fiat… Into real assets. Into commodities, metals. Sound familiar?
Lions… Downgrades lag reality. This is the system admitting truth only after it’s already begun to fail.
Let’s break it down exactly as it is.
Rising Bond Yields = Falling Bond Prices. When yields rise, it means bonds are being sold off. The higher the yield, the less confidence investors have in holding long-term debt. This is debt being dumped, not in theory, but in real-time.
This Can and Will Accelerate. Bond markets are massive, WAY larger than stocks. When the dump begins, it quickly becomes a stampede. Liquidity vanishes. Prices crash. Yields spike. And once confidence cracks in sovereign debt, it infects everything.
Credit Markets WILL Freeze. Credit/debt is the lifeblood of Babylon’s economy. When debt markets seize, no one lends, because no one trusts repayment. THE ENTIRE SYSTEM LOCKS UP… ALL TRANSACTIONS STOP.
Global Stock Market Freefall.
If bond yields continue to surge/spike, the potential for credit vanishing/a credit event skyrockets. Then, equities implode. (Sound familiar again?)
Great Depression on Steroids. Supply chains freeze. Banks restrict withdrawals. Layoffs explode. In 1929, there was still gold. In 2025, there’s only debt backed by more debt.
This is not a “reset.” This is a global detonation.
GM
I trust nothing our government says - NOTHING!!!!
Mystery Babylon is no longer a mystery. Woe to the inhabitants of the world! Get ready for hyperinflation. A days wages for a loaf of bread.