As a market correction begins, money is on the move.

The force of a market correction is equal and opposite to the delusion that preceded it, so we can imagine that the correction will also be unparalleled.

The force of a market correction is equal and opposite to the delusion that preceded it. Given that the jackassery of the last 23 years was unprecedented in US history, so we can imagine that the will also be unparalleled. 

Already, we have seen more losses in the bond market than ever before. Bonds have been going down in value since July 2020, with losses for the ten-year US Treasury of about 26% so far. That reflects losses from inflation (in the sense that the threat of inflation reduced bond prices), but to calculate actual purchasing-power losses for bond owners, you have to take off another 16% (that’s how much consumer prices have gone up since 2020) – for a total real wealth loss of over 40%. (The maths is a little tricky as the inflation adjustment applies to the residual, current value, not to the face value of the bonds). 

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Bill Bonner is an American author of books and articles on economic and financial subjects. He is the founder of Agora Financial, as well as a co-founder of Bonner & Partners publishing.