(The Economic Collapse Blog)—The U.S. government is $40,068,807,991,924.84 in debt, and all of a sudden the rest of the world has become a lot more hesitant to lend us money. Bond prices are crashing and rates are spiking. For years, I warned that our politicians were borrowing and spending way too much money. But those politicians just kept voting for budgets with bigger and bigger deficits.
Now we find ourselves in the middle of a financial nightmare with no way out. The same thing could be said about Japan and most nations in Europe. Globally, bond prices have been steadily plummeting as bond yields have skyrocketed. Unfortunately for all of us, financial institutions all over the planet are holding gigantic mountains of government bonds that have collapsed in value. The unrealized losses that they are potentially facing will be off the charts. Meanwhile, rapidly rising interest rates could set off an unprecedented derivatives implosion. At this point, the total notional amount outstanding for global over-the-counter interest rate derivatives is well over 600 trillion dollars.
As long as investors still had faith in the game, everything was going to be fine.
But now investors are losing faith in the U.S. government, the Japanese government and governments all over Europe, because they have been borrowing money at insanely reckless levels.
So now we have a massive crisis on our hands, and last week things really started to get out of hand.
In fact, last week was definitely “a week of pain” for financially irresponsible governments throughout the world…
This has been a week of pain for anyone who borrows money.
All over the world, lenders are demanding higher interest rates. The global bond market is extracting higher yields from every borrower, starting with the biggest borrowers of all: national governments. But not every government is paying equally.
Trustworthy borrowers with solid finances and honest leadership pay less. Distrusted borrowers with disordered finances and corrupt leaders pay more. In times past, the United States would have headed that first list.
In a previous article, I explained that historically when the yield on 10 year U.S. Treasuries hits 5.25 percent things start to get really crazy.
Well, late last week the yield on 10 year U.S. Treasuries was hovering around 5.2 percent…
In trading yesterday, the yield on a U.S. 10-year Treasury bond hovered near 5.2 percent. Germany pays less than the United States. France pays less than the United States. Canada pays less than the United States. Even Greece pays less than the United States. Estonia—a country under constant threat of a Russian invasion and the annihilation of its sovereignty—pays much less than the United States: only 3.6 percent.
We were only going to be able to play this game for so long.
I don’t know why this was so difficult for so many of the “experts” to understand.
At one point on Friday, the yield on 10 year U.S. Treasuries reached 5.23 percent, which was the highest that we have seen since just before the last global financial crisis…
Investors were rattled this week as the benchmark 10-year Treasury yield soared to its highest level since 2007, but sticky inflation is just one of the factors behind this latest surge.
The key 10-year Treasury yield, which influences mortgages, leapt to 5.23% on Friday for its highest level since 2007. It was the latest leg higher for the benchmark yield, which earlier this month was trading just below 4.8%. Bond yields and prices move inversely to one another.
This is what a bond market collapse looks like, and we are still only in the early stages.
On X, one popular account warned that most people have “no idea what is about to happen”…
The era of easy money is over, and that is really bad news for all of us.
John Roque has pointed out that there have been 16 times throughout history when bond yields have spiked like this. Every single time, it has resulted in some sort of a financial crisis…
“Something always breaks,” proclaimed a recent note from John Roque, head of technical analysis at 22V Research.
Roque pointed out on a chart of the 10-year Treasury yield going back the last five decades 16 instances where it experienced a rapid advance like it is now. During each and every move, some sort of financial calamity resulted. While the scale of the crises varied in their market impact (from the jarring-but-short-lived Silicon Valley Bank failure of 2023 to the 1987 stock market crash), the jump in yields almost always led to some sort of disruption to financial markets that weighed on risk assets.
“As sure as day follows night, when the 10-year Treasury yield rises, something gets knocked out,” Roque remarked to CNBC. “It just pays to be cautious.”
Personally, I am very concerned about what all of this is going to mean for the stock market.
Stock prices are currently at a level that we have only witnessed “three times over the last 156 years”…
Currently, we’re witnessing the stock market do something that’s only been accomplished three times over the last 156 years. When this signal appears, it has consistently foreshadowed significant declines to come for Wall Street.
What goes up must come down.
Every time the CAPE Ratio has been this high, a bear market has followed…
Economists introduced the CAPE Ratio in the late 1980s and have backtested it as far back as January 1871. Over this roughly 156-year stretch, the average multiple is 17.42. As of the closing bell on Sept. 21, the S&P 500’s CAPE Ratio clocked in at 41.60.
Including the present, there have only been three times, spanning 156 years, in which the S&P 500’s Shiller P/E Ratio has topped 40 — and the previous two occurrences were followed by notable bear markets
The bottom line is that we are perfectly primed for a stock market crash, and signs of trouble are already apparent.
The performance of just a handful of tech stocks has been masking some very alarming developments that have been happening under the surface. At this point, 52 percent of all stocks in the S&P 500 are already trading beneath their 200 day moving averages…
The S&P 500’s latest trip back to near-record territory has been powered by a surprisingly small number of stocks.
As of Tuesday’s close, the S&P 500 was only 0.44% shy of a record closing high, and yet 52% of individual member stocks were trading below their long-term 200-day moving averages. This is a reflection of the fact that a handful of stocks, chiefly hyperscalers like Meta and semiconductor stocks like Micron Technology, have been doing much of the heavy lifting lately.
That is a major red flag.
In fact, there are major red flags all around us.
And now we are entering the pivotal month of October when some of the largest stock market crashes throughout history have occurred.
Historically, bonds normally start crashing before stocks do.
That exact same pattern is playing out right in front of our eyes in the fall of 2026.
If it was just the U.S. that was in trouble, that would be bad enough.
But what we are looking at is a truly global debt crisis.
This moment has been coming for a very long time, and the entire world is going to be stunned by what happens next.
Michael’s new book entitled “10 Prophetic Events That Are Coming Next” is available in paperback and for the Kindle on Amazon.com, and you can subscribe to his Substack newsletter at michaeltsnyder.substack.com.
Starting the Day With a Scripture-Inspired Roast Helps Center Your Thoughts on Eternal Truths Amid Temporal Pressures
The world can seem chaotic, especially right after we wake up. Many believers start their mornings reaching for something familiar — a hot cup of coffee — yet end up settling for mediocre brews that do little more than deliver a caffeine jolt. The daily grind of life, with its endless distractions, news cycles, and responsibilities, can leave even the most faithful feeling spiritually parched alongside their physical fatigue. What if your morning ritual could do more than wake you up? What if it could ground you in truth, nourish your body with exceptional quality, and quietly advance a kingdom purpose at the same time?
That’s the promise — and the reality — behind Promised Grounds Coffee. This Christian-founded company doesn’t just roast beans; it approaches every step as an act of worship and discipleship. By selecting only the top 10% of specialty-grade beans, ethically sourced from dedicated farmers in Central and South America, and small-batch roasting them with reverence in Austin, Texas, Promised Grounds delivers what many describe as the best coffee available — never burnt, never bland, but rich with origin stories and layered flavors that honor God’s creation.
From the vibrant Psalm 27 Roast (a light, bright medium option) to the bold yet peaceful 2 Timothy 1:7 Decaf, each bag carries a Scripture verse that turns your daily pour into a gentle reminder of faith. And through their Ounce Per Ounce Promise, every ounce of coffee you enjoy provides an equal ounce of clean water to families in need via partnership with Filter of Hope — literally brewing hope for body and soul, one cup at a time.
The challenge for today’s Christians runs deeper than finding a decent cup. In an age of convenience-driven consumerism, it’s easy to support companies that dilute values or remain silent on matters of faith. Many believers want their everyday choices — from what they drink to how they spend — to reflect discipleship rather than just convenience. Promised Grounds solves this by weaving Christian excellence into the entire process: beans nurtured with prayerful stewardship by farming families, roasted as an offering rather than a commodity, and packaged with Bible verses to encourage a mindset of gratitude and purpose from the first sip. Reviewers consistently praise the smooth, rich profiles — whether enjoyed black in a drip maker, iced on a warm day, or shared in fellowship — noting how the quality stands toe-to-toe with premium secular brands while delivering something far more meaningful.
This integration of faith and flavor addresses a real need in Christian households and ministries. Busy parents, church leaders, and remote workers alike report that starting the day with a Scripture-inspired roast helps center their thoughts on eternal truths amid temporal pressures. The coffee’s exceptional character — bright citrus notes in lighter roasts or deep chocolate undertones in bolder ones — comes from meticulous selection and careful roasting that respects the bean’s natural gifts rather than masking them. It’s the kind of coffee that elevates a simple quiet time, fuels productive workdays, or sparks meaningful conversations when shared at Bible studies or outreach events. And because it’s ethically sourced with integrity, every purchase supports sustainable livelihoods for farmers who treat their crops like family harvests.
For those leading churches or small groups, the impact multiplies. Promised Grounds offers bundles and options perfect for hospitality ministries, turning ordinary coffee service into an opportunity to point people toward the living water of Christ. Imagine greeting visitors with a warm cup whose very bag carries God’s Word — a subtle yet powerful witness that aligns with the Great Commission. The company’s Texas roots and commitment to “brewing hope” resonate especially with believers who value American enterprise paired with global compassion.
Of course, quality alone isn’t enough if the experience feels out of reach. Promised Grounds keeps it accessible with practical perks like free shipping on orders over $40, sample sets for discovering favorites, and thoughtful add-ons such as faith-themed mugs. Whether you prefer whole beans for fresh grinding, grounds for convenience, or even bulk options for larger households and ministries, the result is consistently superior coffee that makes discipleship feel integrated rather than added on.
As you consider how to align even the smallest habits with your walk with God, Promised Grounds Coffee stands out as a refreshing solution. It tackles the dual problems of subpar daily sustenance and disconnected consumption by offering a product that genuinely excels in taste while advancing a mission of clean water, farmer dignity, and scriptural encouragement. Believers who make the switch often describe it as more than a beverage upgrade — it becomes part of their rhythm of gratitude, a daily invitation to remember that every good gift comes from above.
If you’re ready to transform your mornings (and perhaps your church gatherings) with coffee that honors both exceptional craftsmanship and Christian values, I encourage you to explore what Promised Grounds has to offer. One sip at a time, you’ll be nourishing your body, refreshing your spirit, and participating in something far greater — all while enjoying what truly is among the best coffee available.
