Mathew Carr

Deeply sinister Bloomberg is pretending interest-rate rises are inevitable and permanent. That is a lie

Opinion by Mathew Carr

The reporting on corrupt bond markets is getting worse and worse.

Conflicted Bloomberg, the banker news service, has taken to covering up the drop in 10-year US yields back below 5%.

It has not completely ignored that decline, yet it’s certainly downplaying it….publishing charts in the past week that ignore it.

What is really going on is a faster decline in yields than the much-emphasised increase last month. See first chart below.

Bloomberg is also pretending that war inflation is an excuse for higher interest rates. It isn’t. Higher interest rates in monetary policy that is designed to deal with wage inflation. Real wage inflation is negative. See notes.

One

This lie—that higher interest rates are needed to deal with war inflation — is one of the reasons I say the bond markets are corrupt.

Two

Another reason why they are corrupt is that public and market analysis largely ignores the need for lower interest rates for climate action.

Climate action requires low interest rates because much of the cost for clean-energy and adaptation projects is up front.

Three

A third reason why I say bond markets are corrupt is they have not changed their impression of emerging countries (even as rich nations argue g20 emerging nations should contribute to climate action). For example, the bond markets seem to almost completely ignore India’s huge taxpayer base and its low debt-to-GDP ratio. Arguably, India 🇮🇳 should have lower interest rates than the USA 🇺🇸 ….toward China rates. See second chart below.

See charts and notes.

Why is Bloomberg downplaying these giant shifts? I contend it’s because it does not care about the people but mainly about bank profits. Higher interest rates mean higher profit margins for banks.

Gemini…partly unchecked

(More to come)

WSJ

Notes:

Gemini unchecked:

Yes, real wage growth in the United States is currently negative.

According to the latest Bureau of Labor Statistics (BLS) Real Earnings release, real average hourly earnings fell by 0.7% year-over-year (from September 2025 to September 2026). On a month-over-month basis, real average hourly earnings dropped 0.5% in September 2026.

Summary Data

MetricYoY Change (Sept 2025 – Sept 2026)MoM Change (Aug 2026 – Sept 2026) Nominal Average Hourly Earnings+3.0%+0.1% Consumer Price Index (CPI-U)+3.7%+0.6% Real Average Hourly Earnings-0.7%-0.5%Real Average Weekly Earnings-0.1%-0.5%

Why Real Wages Are Negative

  • Inflation Accelerating Faster Than Pay: Nominal pay increases slowed to 3.0% YoY in September 2026—the lowest annual growth rate since May 2021—while consumer inflation registered at 3.7% YoY.
  • Worker Quits Sinking: Lower job mobility (the quits rate hovering around 1.9%) has reduced leverage for workers switching jobs to demand higher wage increases.
  • Hours Worked Offset: A 0.6% increase in average weekly hours helped buffer total takeaway pay slightly, keeping real weekly earnings at a milder -0.1% YoY drop compared to hourly metrics.

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