Right now, the situation with the markets and the financial system at large might be described comparatively as a terminally ill patient barely breathing on a life support machine while attending doctors tell the family that everything looks on the up and up. In other words, the situation is really ugly behind closed doors – but those doors are about to be swung wide open for the world to both see and experience.

Take the ongoing “bond bloodbath,” as Wolf Richter calls it. Delusions about the Federal Reserve’s fight with inflation are finally giving way as reality sets in that inflation is not going away. It is not transitory like notorious liar Treasury Secretary Janet Yellen kept saying, and there does not really appear to be any way to stop it.

Long-term yields are right at the point of breaking 5 percent – the last time this happened was in 2007, and we all know what happened immediately after. As explained by The Daily Doom, this represents “a huge regime change, after years of the Fed’s QE (quantitative easing) and interest rate repression, and all prior assumptions are out the window.”

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