Bond Market Collapse Looms as Low Interest Rates Unwind

Peter Schiff predicts that the bond market's day of reckoning is coming, and it could happen sooner than expected. He notes that Japan's recent currency intervention may have worked in the short term, but it won't solve the problem in the long run.

The only way to truly strengthen the yen is through higher interest rates in Japan and a weaker US dollar. However, Schiff argues that the dollar will eventually collapse under its own weight due to decades of artificially low interest rates.

In the US, policymakers are trying gimmicks instead of real solutions to address the bond market's issues. According to Schiff, the only thing that would truly help is substantial cuts in government spending, but this isn't even being considered.