Part 2/12:
A central theme is the exponential rise in government expenditure worldwide. Charts illustrate how increased government spending—particularly through debt issuance—floods markets with bonds, raising yields and creating financial instability. The expert highlights that private treasuries are expected to add around $2 trillion in debt in 2024, potentially more, echoing the post-2008 financial crisis scenario.
Notably, Jerome Powell's recent body language signaled uncertainty, possibly due to labor market data suggesting a slowdown. With bank giants like JP Morgan, Bank of America, and Citigroup holding over $7 trillion in off-balance-sheet financing, parallels are drawn to the 2008 crisis, raising questions about whether history might repeat itself.