Analysts Say an Onslaught of Fed Rate Hikes Could Spur a ‘Bond Market Flash Crash’ or ‘Blow up the Treasury’ – Economics Bitcoin News

Investors are anxiously awaiting the U.S. Federal Reserve’s next rate increase next month. The U.S. has struggled with high inflation and is currently in a state of flux. Harris Kupperman, the founder of the hedge fund Praetorian Capital, believes the onslaught of Fed rate hikes could very well “blow up the Treasury.” Furthermore, amid the gloomy macro trends, the chief marketing officer at Fluid Finance, Jessica Walker, says the failing economy and floundering fiat currencies reveal the true benefits of cryptocurrencies.

Praetorian’s Harris Kupperman Says a Barrage of Fed Rate Hikes Could End up ‘Blowing up the Treasury’ News this week reported that a few analysts believe the U.S. Central Bank will code another Federal Funds Rate (FFR) increase by three-quarters a point at their November meeting. On October 18, the founder of the hedge fund Praetorian Capital, Harris Kupperman, published a report that claims an “avalanche is in motion” as he believes the Fed is currently trapped and despite talking tough, he believes the Fed will need to pivot on raising the FFR.

Analysts Say an Onslaught of Fed Rate Hikes Could Spur a ‘Bond Market Flash Crash’ or ‘Blow up the Treasury’
Harris Kupperman is the chief adventurer of Adventures in Capitalism. He believes that the Fed has been trapped.

Kupperman also argued his case on the podcast “Forward Guidance” when he detailed that the Fed will have a real hard time when oil surges again. The Praetorian Capital founder and chief adventurer at Adventures in Capitalism, argued on the podcast that the Fed will have to pivot and accept high inflation as today’s reality. In the report published on October 18, Kupperman notes that continued rate hikes targeting a rate of 4.6% or higher could lead to “blowing up the Treasury.”

J. Kim Insists ‘2008’s Financial Weapons of Mass Destruction’ Still Exist and if the Fed Goes Rogue, the US Central Bank Could ‘Create Illiquidity in the Largest Bond Market in the World’

J. Kim, skwealthacademy’s substack, explains in a blog post that 2008’s financial weapons of destruction still pose a threat in 2022. Kim further believes that a “U.S. Treasury bond market flash crash is inevitable under these market conditions.” Speaking about the financial weapons of mass destruction, Kim details how the perception of a mass decrease in global derivatives since 2008 is an illusion.

Kim’s article adds:

It is wrong to assume that bankers are now in a position of less risk with these highly volatile products, which can fall like a series of dominoes when one big bank defaults on one major type of these derivatives.

Kim’s blog post explains how it’s possible the U.S. central bank has gone rogue and similar to Kupperman’s position, it could wreak havoc on the bond market.

“While the ECB seems to be keeping their end of the bargain in not imploding this critical derivative market, U.S. central bankers have not,” Kim’s blog post notes. “If the Feds really go rogue in continuing to drive the USD strength against all other major global fiat currencies higher, not only will this possible create illiquidity in the largest bond market in the world, U.S. Treasuries, but it may cause massive defaults in the USD denominated interest rate derivative market as well.”

Analysts Say an Onslaught of Fed Rate Hikes Could Spur a ‘Bond Market Flash Crash’ or ‘Blow up the Treasury’
J. Kim (Skwealthacademy) asks about what might happen if U.S. central banking officials go rogue.

CMO of Fluid Finance Says That Failing Fiat Currency and Gloomy Economy Shows The Benefits Of Crypto Diversification And Decentralization

Meanwhile, Jessica Walker, the chief marketing officer at Fluid Finance told Kitco’s David Lin, anchor and producer at Kitco News, that diversification and options like cryptocurrencies shine during these macro trends. “There is a huge concern right now about the security of people’s own fiat currency, and their own country’s coin,” Walker told Lin at the Future Blockchain Summit in Dubai. “Being able to diversify and have other options besides fiat is really important now, more than ever, with so much geopolitical uncertainty.”

Jessica Walker, Fluid Finance CMO, believes in diversifying to bitcoin, ethereum or other crypto assets in the face of geopolitical uncertainty.

Walker also talked about the Canadian truckers’ protest against the vaccine mandates earlier this year. Gofundme was the crowdfunding platform that stopped Ottawa’s Freedom Convoy from receiving donations. Canadian Prime Minister Justin Trudeau used the Emergencies Act as a remedy to address the protests. Banks also frozen bank accounts. “It was a pretty scary time, and if anything, it was an advocate for decentralization,” Walker said on Friday. “This is why we need bitcoin. This is why we need currencies that governments can’t control,” the Fluid Finance executive said.

Walker is a believer in diversification and believes that bitcoin, ethereum and other blockchain projects are good options. “I dollar-cost-average into bitcoin, ethereum, and then I look at projects that I really believe in,” Walker told the Kitco host on Friday.

This story contains tags
Adventures in Capitalism, Analysts, Blog Post, bond market, bond market flash crash, Financial Weapons, Fluid Finance, Fluid Finance Executive, global derivatives, Harris Kupperman, illiquidity, J. Kim, Jessica Walker, Kitco, Kitco’s David Lin, market analysts, market strategists, Praetorian Capital, skwealthacademy substack, U.S. central bankers, U.S. Treasury market

What do you think about Harris Kupperman’s and J. Kim’s opinions about the current erratic Treasury market amid an aggressive U.S. central bank? What do you think about Fluid Finance executive Jessica Walker’s diversification strategy? Please share your views on this topic in the comment section.

Jamie Redman

Jamie Redman, a Florida-based financial journalist and news lead at News is Jamie Redman. Redman is an active participant in the cryptocurrency community from 2011. Since 2011, Redman has been an active member of the cryptocurrency community. Redman is a prolific writer for News, with over 6,000 articles on disruptive protocols.

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