Dear Reader,
September was the worst month for global bonds in years. The 30-year Treasury just touched 5.6%, a level nobody has seen since 2002. The bond market is screaming. The financial press is calling it yield normalization.
Inside today's issue:
- The Bond Market's Real Message: When the 30-year yield hits a 24-year high, it is not about the Fed. It is about $40 trillion in debt. And the market finally saying it out loud.
- The Cycle I've Seen Before: Every empire in history printed its way out of debt. None of them succeeded. The bond market knows this. Your portfolio should too.
- What You Can Do Right Now: The escape hatch is the same one it has always been. Real assets. Things they cannot print.
- Larry Benedict: Oil Skimming: Larry Benedict just released a new presentation on a strategy called "Oil Skimming." It's worth a look. (Brownstone Research)
HERE IS WHAT THE MAINSTREAM IS NOT TELLING YOU.
The financial media has a story they like. ISM manufacturing came in at 54.5 last week. Above 50 means expansion. They put that number on the screen, smile, and call it a strong economy.
Then they cut to a commercial.
They do not tell you that in the same week, global bonds suffered their worst monthly decline in years. They do not mention that the 30-year Treasury yield is at its highest point since 2002. They do not tell you that September was a massacre for anyone holding government debt.
The bond market is not doing yield normalization. The bond market is pricing in fiscal collapse.
Here are the numbers they glossed over:
- US gross national debt: $40 trillion. Crossed that threshold in August 2026.
- This year's deficit: $1.8 trillion. That is the government spending $1.8 trillion more than it takes in. This year. One year.
- CBO projection: US debt hits 175% of GDP by 2056. That is not a forecast. That is a math problem.
- Japan's 10-year bond yield: hitting its highest level since 1996. This is not an American problem. It is a government debt problem.
I have been saying this for 30 years. Every empire in history tried to borrow its way to prosperity. Rome. Britain. The Ottoman Empire. They all printed. They all borrowed. They all reached a point where the people who lent them money stopped believing they would ever be paid back in full.
"Deficits are expected to average more than 6% of gross domestic product over the next decade and will add significantly to the national debt."
That is the government's own accountants saying it. Not ZeroHedge. Not Peter Schiff. The Congressional Budget Office.
The bond market is not broken. It is working exactly as it should. It is just telling you something the anchors on CNBC are paid not to say.
And here is what I keep thinking about this week. The dollar looks "strong" right now because the yen and euro are weaker. That is like being the tallest person at a conference for short people. Relative strength is not real strength.
My rich dad taught me one thing about paper money: it always finds its true value eventually. The bond market is starting that conversation. Most people will not realize what they were hearing until it is too late.
But right now, there is something else happening with the dollar itself, something I think every American needs to understand before this plays out.
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Here is what the bond market is actually telling you.
The dollar's days as the world's unchallenged reserve currency are numbered. Not because of any single event. Because of $40 trillion in debt that cannot be serviced without printing. Bond investors know this. That is why they are selling.
I have owned gold since $300 an ounce. I own silver. I own real estate that produces cash flow. These are not investments in someone's promise to pay. They are assets that have outlasted every fiat currency in history.
When the bond market speaks, listen. It speaks in yields, not headlines. And right now, it is saying the price of trusting the US government with your savings just went up. A lot.
Paper burns. Gold does not.
To your freedom,
Robert Kiyosaki
Author, Rich Dad Poor Dad
P.S. 49 drone companies entered the Pentagon's trials this year. 19 are still standing at Fort Carson, Colorado. One of them is at the center of my new briefing, and one defense stock is named free inside. Watch it here.