The 30 year bull bond market is done for

That market was a bet that our beloved government would drive the economy into negative growth, and has been a correct bet for 30 years.  It worked simply, the bond market placed its bet along the treasury curve and waited.  Sure enough, the US Snate would take the money, and deliver shoddy products. Bond prices rise as the real growth slows. So the bond market took gains.  The only time the bond market lost this trade was about four years of the Clinton administration when Bubba managed to get government multipliers above one.

What has happened since then?  Well, the upper income braket, which has been making this trade, was recently hired by the Senate to act as the purchasing agent for senatorial products, they now purchase US Senate programs after having bet on shoddy products from the Senate for 30 years.  The bond vigilantes are coming to Washington, how about that!

Why does this work?  Because the economy always shows positive nominal growth, and the real growth is not realized until a contraction. This is an artifact of the Shannon economy, the Shannon equilibrium is always positive definite, even when real growth is negative.  Take a look at real growth over the last 30 years.  Take the 30 year nominal rate today, subtract from  it the 30 year nominal rate of 1980 and get something like -2%, the real growth since 1980; and a sure bet.

What is causing this negative growth?  No democracy in the Senate.  Hence we have nothing but spectral interference between California and DC.  Consider the latest income tax hikes, they were queued up, first California then DC raised them.  That quick sequence is a sing of spectral intererence.

Now the bond vigilantes are in charge of the entire government chain, they are in Michigan, Chicago, all over California and will be flying into DC next month.  Welcome to regime change.