Those were the words of famed bond fund manager Bill Gross.

(Gross was actually the first portfolio manager inducted into the Fixed Income Analyst Society's "Hall of Fame". And yes, there really is a hall of fame for that.)

Gross wrote that more than $10 trillion in government bonds actually have NEGATIVE yields, and that interest rates are at the lowest levels in financial history.

For example, the British government just issued its lowest-yielding bonds since 1694.

This has very dangerous implications.

Goldman Sachs recently calculated that a mere 1% rise in US Treasury yields would trigger over $1 trillion in losses, exceeding all the losses from the last crisis.

(Bear in mind that interest rates need to rise by at least 3x that amount just to reach their historic averages… so this is entirely plausible.)

Most of those losses would be suffered by Western banks, the majority of which have insufficient capital to withstand such a major hit.