Tom Bilyeu

So when yields are going up, it's actually a sign of a problem.

It's people saying, uh-oh, I don't have faith that this is gonna work, so I'm gonna lower the price, give you a way bigger potential return, so you'll be the sucker that gets drawn in by greed.

You hold that motherfucker for 10 years.

We'll see what happens.

So it's happening all the time.

And that has an impact on the appetite for bonds.

And if the appetite goes too low, then the treasury is going to step in and buy those things.

Now, the treasury doesn't want to do that, but they know that they'll have to.

So as the bond market starts getting crazy, that's bad news for them because they may have to print money and buy a ton of that stuff just to keep the economy going.

And for the reasons we've talked about a trillion times in the show, printing money, bad news.

So you don't want to see major sell-offs.

You want to see...

everybody have belief that the long tail bond rates, oh, that's going to be great.

You want that rate low.

And so people are like, yeah, the 10 year rate is low.

Great.

That means that people believe it's nice and stable.

You don't have to entice people to come in and buy it.

And so as those rates climb, which is exactly what's happening in Japan, everyone starts to panic because if you want to borrow money,

you know, to build something, you don't want to borrow it for 90 days.