Collapse of bonds, debt, inflation… “beware of a negative spiral”

These are the three main economic dangers that threaten our future: the stratospheric level of public debt, the rise in inflation and the increasingly sharp rise in interest rates on government bonds and, therefore, on our credits . And this, in particular in France. Thus, as expected, French public debt reached a new all-time high of €2,916.8 billion in the second quarter of 2022. It will inevitably exceed the €3 billion mark by the end of 2022.

In this context, and as has been observed for several months, interest rates on government bonds will continue to tighten. the shock The bond market has already started at the end of 2021 and has now reached a scale forgotten since 1994. From the beginning of September 2021 to September 23, 2022, interest rates on ten-year government bonds increased from 0.6 % to 4.5% in Greece, from 0.6% to 4.2% in Italy and from 0.3% to 3.1% in Spain. Even Germany, which nonetheless remains the least dissipated “pupil” of the EMU (euro zone) class in terms of rising public debt, saw its 10-year Bund rate fall in this same period from -0.4 % to almost 2%. , the highest since January 2014.

As for the interest rate on ten-year French government bonds, the sanction was also severe, as it went from -0.4% in January 2021 to 2.6% on September 23, 2022, a summit since September of 2013. Much more serious, given this raising (…)

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