Following recent weeks crisis in the Yen carry trade and Japan and US governments’ intervention, this past week US 30 yr. Government bond rates surged past 5% to rates just before the 2007 crash. What’s behind it? After the AI stock bubble, legacy software companies’ implosion, private credit market and gold, silver, crypto price crashes, is the 30 Yr. Bond another reflection of increasing US and global financial markets’ instability? What’s the cause? Inflation? US $40 trillion government debt? AI corporate bubble and record debt crowding out government debt servicing? Why the US is approaching a crisis in inability to finance its massive debt with Treasury securities sales. Why the Empire is going broke!
US Govt Bonds Dumping/Global Financial Instability Rising
August 21, 2026 by jackrasmus
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My question on this post is who among the tech bros is waiting on the sidelines to tear apart other companies as the systemic fragility of the world economy intensifies. Going back to the 2008-2009 collapse, this site claimed that that collapse was initiated by Goldman Sachs to devour the valuable real estate of Lehman Brothers. There is a hint that the tech bros are brewing the same kind of plot from an unusual source: the report of a very young, very bright lady in the midst of describing the unfolding tech nightmare in New Albany Ohio. [How the Epstein Network is Privatizing Govt & Building the Surveillance State(w/Whitney Webb) TCHR] This is a long vid and worth viewing on its own merits; what the utterly corrupt and very powerful tech crowd is doing who “worship” AI and think AI is “God’. Her words. But about halfway through she alludes briefly to something I have never heard before: that Peter Thiel engineered the collapse of the Silicon Valley National Bank and alludes to the idea that he wanted to drive Big Tech into a high tech bank he was developing. And Bingo! Goldman Sachs/Lehman Brothers leaps to mind. As corrupt as Big Tech is, they are also smart and may have teams of analysts waiting to use the cover of some kind of financial crash to devour one another, say devour Meta or Google or whatever. Remember Elon Musk’s mantra: move fast and break things.
In every financial crash there are always other capitalists who, sensing the vulnerability of weak players, precipitate the collapse of those weak players in order to pick them up at bottom prices. In 2008, it was Chase that refused to loan any more funds to Bear Stearns. The latter crashed and Chase, with help of the Fed, bought up Bears’ assets for a mere $2B, which included its skyscraper office building in NY that was valued at 10 times that alone. Not counting other assets. Ditto with Lehman later in August with Goldman. In both cases, the contagion accelerated and expanded the crisis, while individual banks got richer. It only ‘stopped’ when AIG went under and the government bailed it out with the TARP funds (along with GM and others). In my posts on this show the past six months I’ve been warning of signs of financial fragility increasingly emerging across various markets–at the center of which is the AI investment bubble that promises to fracture multiple financial markets. Last week I spoke about the AI bubble’s role in the Treasury market fragility today (also caused by other forces but AI contributing). I predicted the AI bubble itself will bust in 12-18 months at the latest. In recent days yet another indicator has emerged in South Korea, where it’s AI bubble has just busted and that country’s KOSPI stock market (heavily infected with AI stock speculation like the US) just crashed. It reportedly has lost 40% of value! The South Korea market event will not be lost on US investors in the S&P and Nasdaq. Just watch. AI is a severe economic disease. People have no idea how seriously debilitating it will have on the economy, not to mention the political system, culture, education, loss of millions of jobs, war risks (including nuclear) and the quality of life itself. The tech CEOs (with bankers, MIC, govt officials) don’t care. They just see massive dollar signs, profits, and campaign contributions and ability to control the American populace. Along with the likelihood of nuclear war by 2035, accelerating climate change beyond 2% celsius, AI is the great threat to everyone. Any one, and likely all three, I’m convinced with end Capitalism as we know it by mid-century at latest.