Fabulous, Beautiful Debt
Summary
Robin Wigglesworth joins Slate Money to discuss his new book, *A Fabulous Debt*, which explores the 1,000-year history of bonds and their role in building modern financial systems. The hosts examine why bond markets are currently volatile, analyzing factors like inflation, the Federal Reserve's credibility, and the shift toward hedge funds as major Treasury holders. They debate whether rising yields signal economic strength or systemic risk, noting that bonds serve as both assets and liabilities. The conversation also touches on the concept of debt jubilees and the complex relationship betw…
Topics discussed
Introduction and host introductions
Guest intro and book overview
History of bonds and the 'fabulous debt' concept
Bond markets and government accountability
Debt as an asset and market depth
Sovereign debt and emerging market pride
Badly structured bonds and fraud examples
War bonds and financing large projects
Historical bond bubbles and the Poy scheme
Current bond market stress and default risks
Bond yields, duration, and inflation
Fed policy and long-term interest rates
Treasury sell-offs and private sector competition
Inflation-protected securities and energy shocks
Shift in Treasury buyers to hedge funds
Hedge fund arbitrage and market brittleness
Debt-to-GDP rules and MMT monetization
Debt jubilees and historical debt forgiveness
Financial system fragility and 0 Hedge
Pandemic interventions and QE history
Numbers round: 5.033% bond yield
Numbers round: Iced coffee at interviews
Numbers round: Elizabeth Holmes and movies
Numbers round: 7% mortgage rates
Closing remarks and sign-off
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