Race to the bottom: government bond yields edition5 June, 2012, 19:35. Posted by Zarathustra
Say anything about how US has been spending too much, borrowing too much, and that it will lead to hyperinflation, and US and much of the developed world will default, etc.
That’s some of the apocalyptic messages that some people have been telling everyone all these years.
The market, rightly, does not agree. Here’s a chart of US Treasury and German Bund yields, both racing to the bottom. If anything, this spells trouble and deflation, not hyperinflation.