Paulson Says US Should Prepare for a 'Vicious' Bond Crash

• Paulson highlights a unique crisis where the Fed might become the only buyer of Treasuries, causing prices to fall and interest rates to rise.
• He emphasizes the inevitability of 'economic gravity' and predicts a 'vicious' outcome if the US 'hits the wall' on its debt.
• He recommends an 'emergency break the glass plan' that is targeted, short-term, and ready to be deployed.

Former US Treasury Secretary Hank Paulson warns of a potential 'vicious' crisis in the US Treasury market, where the Federal Reserve could become the sole buyer, leading to falling Treasury prices and rising interest rates. He urges authorities to prepare an emergency, short-term 'break the glass' plan to address this eventuality.