“They Will Panic”: Jamie Dimon’s Dire Bond Market Warning—Anatomy of a Coming Collapse

The Calm Before the Storm Jamie Dimon didn’t just rattle the gilded halls of the Reagan Foundation when he declared, “You are going to see a crack in the bond market. It is going to happen. You are going to panic.” He exposed the rotting carcass of the global debt regime—a carcass that the so-called regulators have spent decades dressing up in pretty clothes. The suits in D.C. are sleepwalking through the financial equivalent of Chernobyl, oblivious to the radiation of systemic risk that’s already poisoning the economy. This isn’t some idle Wall Street chatter. It’s a strategic leak from a man who sits atop the financial food chain, a man who’s seen the puppet strings of monetary policy for what they are: weapons of mass delusion. The Historical Blueprint: Echoes of Past Crises Let’s take a ride through history, because the bond market has always been the canary in the coal mine. Remember 1994? The so-called “Great Bond Massacre,” when Alan Greenspan’s surprise rate hikes turned the bond market into a bloodbath. Billions evaporated in weeks. Or the 2008 meltdown, when Treasury yields plunged and the Fed had to deploy the printing presses at full tilt just to keep the bond vigilantes at bay. Each time, the crisis was painted as a once-in-a-generation fluke. But it was never a fluke. It was the system’s default setting: a permanent war between the real economy and the money magicians at the Fed and Treasury. Now, Dimon’s warning is the opening salvo in the next chapter of this endless battle. The Crack in the System: Liquidity Dried Up, Confidence Shattered April’s sharp selloff was the shot across the bow. Yields on the 10-year and 30-year Treasuries surged 25 basis points in a single month. Liquidity? A desert. This isn’t just about some fancy investment vehicles. This is about the lifeblood of government funding—the $27 trillion (and climbing) debt mountain that props up the entire charade of “economic stability.” Jamie Dimon’s criticism of the supplementary leverage ratio (SLR) isn’t academic. It’s a tactical assault on the regulatory apparatus that’s supposed to ensure stability. In reality, it’s just another illusion—a Potemkin village of capital buffers that do nothing to absorb the tsunami of new debt issuance. The False Calm: Government Gaslighting and Empty Reassurances Scott Bessent, the new Treasury Secretary, is playing his role in the kabuki theater, muttering about “SLR reform” and Fed backstops. But the cold truth is this: The Fed is stuck in a no-win scenario, a cornered animal forced to choose between fueling inflation with more money printing or letting the bond market crack and take down the whole show. President Trump 2.0’s tariff theatrics are a sideshow. They might goose the S&P 500 for a quarter or two, but the bond market—the real barometer—remains unimpressed. Foreign investors, once the suckers at the Treasury auction table, are already heading for the exits. A dismal 20-year auction last month was just the opening act in a slow-motion exodus. The Counterargument: “This Is Just Cyclical Noise”—A Dangerous Lie Let’s address the counterpoint: the establishment’s tired mantra that this is just “cyclical noise,” a temporary hiccup that will pass. They’d have you believe the bond market always snaps back. That’s the lie they told in 1994, in 2008, and in every rate shock since. But here’s the data they can’t spin: ✅ The federal deficit has doubled in five years—now closing in on 7% of GDP. ✅ Interest payments on the debt are already the single biggest line item in the federal budget, bigger than the Pentagon’s war chest. ✅ The Fed’s balance sheet is still bloated with $8 trillion in assets—most of it toxic junk they can’t unload without causing another panic. This isn’t cyclical noise. This is structural collapse. The math doesn’t lie. The Broader Consequence: Financial Feudalism Dimon’s smirk at the end of his remarks—“I’m not going to panic. We’ll be fine”—says it all. The elites have hedged their bets. They’ve parked their wealth in private markets, hard assets, and shadow banking havens while the middle class is told to “trust the system.” What comes next isn’t just a crack in the bond market. It’s the final stage of financial feudalism, where the collapse of public markets is the perfect excuse to consolidate control. Every crash is a wealth transfer, a mechanism to funnel assets from the hands of the many to the few. They’ll use the panic to push digital currencies—FedNow and its cousins—further into your wallet. They’ll wrap it in the language of “safety” and “modernization,” but it’s just another chain around your ankle. The Final Warning: Don’t Be a Casualty Dimon’s warning isn’t for the power brokers—they’re already prepared. It’s for you. Because when the bond market buckles, the suits in D.C. will do what they always do: bail out their friends, inflate away your savings, and tell you it’s all part of the plan. Don’t buy it. Stay vigilant. Stay informed. And above all, don’t let the next manufactured panic become your personal financial ruin.

“They Will Panic”: Jamie Dimon’s Dire Bond Market Warning—Anatomy of a Coming Collapse

Bill Brocius Jun 3

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