Peak Prosperity The Big Beautiful Bill Is More of the Same
May 23, 2025
Paul Kiker of Kiker Wealth Management discusses the alarming crisis in global long-bond markets, particularly Japan's dire situation and its implications. He highlights the dangers of increasing inflation tied to the U.S. fiscal policy shift towards economic growth through money printing. Kiker also analyzes the ripple effects of recent legislation, warning about the risks of deficit spending. Furthermore, he tackles the transformative impact of AI on jobs and investment strategies, urging listeners to be proactive in uncertain economic times.
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Japanese Bond Market Meltdown
- Japanese government bonds are failing with yields exploding higher, indicating a melting down of confidence.
- Higher yields mean borrowing costs are soaring, causing fewer people to afford loans, signaling systemic stress.
Dollar Falling Despite Yield Rise
- Rising yields should strengthen the dollar, but now the dollar is falling alongside yields going up.
- This signals capital flight and stress, showing investors doubt U.S. fiscal responsibility and stability.
U.S. Deficit's Reckless Growth
- The U.S. budget deficit is increasing dramatically, adding about $25 trillion over the next decade.
- This reckless fiscal path inflates prices and worsens inflation, with little chance of improved fiscal discipline.