Part 6/17:
The conversation transitions to whether these market maneuvers are inherently sinister or part of natural market cycles. Alden indicates that the recent bond yield movements are rational responses to the economic environment—currencies, especially bonds, have been losing purchasing power due to low yields and high inflation expectations. However, she warns that persistent high debt levels (sometimes exceeding 100% of GDP) threaten fiscal crises, leading governments to devalue their currencies via inflation or financial repression to manage debt burdens.