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Chris Puplava, CIO at Financial Sense Wealth Management, explains how surging government borrowing could flood the bond market and lower bond values. The Treasury General Account (TGA), the government’s “checking account,” impacts markets: spending from it boosts stocks, while refilling it withdraws cash, weighing on both stocks and bonds. With the debt ceiling currently limiting new borrowing, the government is spending TGA cash, keeping markets stable—for now. If borrowing resumes, Puplava warns 10-year yields could hit 5–6%, risking recession.
Video Length 00:23:19
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