THE BOND MARKET’S CHINA SYNDROME. “The US fiscal situation is no different than Europe, and you can bet that if our yields start rising, our credit condition will rapidly deteriorate. This will feed on itself. Suddenly sentiment will shift and our reliance on foreign financing will be at risk as the reserve currency status is called into question. We are blaming Europe for our current economic problems, but in reality they are doing us a favor by providing a blueprint for how a bond market meltdown can unfold. For the US it potentially is more severe because once it gets started the only way to stop it is to print more currency, which will exacerbate the problem.”