Money to be expensive

United States - countries that owe the most money in the world - depends on the confidence of investors to finance the huge borrowing needs. So if China is increasing concern, along with other investors in the world, the lender will request a higher rate of return. Thus, bond yields will rise, and bond prices will fall.

 

just look at the chart above, which shows clearly that the yields or interest rates have risen since early October last year. Simply put, this increase is expected to continue throughout the printing of money, Bailouts and the socialization of private debt in the U.S. and European countries did not cease immediately.

Conclusion: if investors are worried about the solvency of the government's long-term interest rates lead to higher asset value on the balance of the world's major banks - which have a lot of government bonds - are at risk has decreased again. In addition, rising interest rates would also lead to higher borrowing costs for companies, consumers and banks, and gives a great blow to the global economic recovery.