The bond market going off the rails

I've been recently paying more and more attention to what's happening in the bond market and from what I understand:

1. banks can't buy bonds no more. they don't have the liquidity to issue loans let alone buy bonds.
2. there is no plan insight to slow down government spending since next year is election year.
3. deficit at all time high, 1.5t of new bonds will be issued this and the next quarter.
4. foreign buyers are walking away, and japan is expected to do so soon (biggest holder of US bonds).
5. inflation is not going down so interest rates has to stay up and so yields will need to do the same too.
6. Europe is in recession and no way to come out of it (stagflation is the name of the game).
7. Fed needs to continue QT so that they're prepared for the next QE cycle so more bonds to come.

seems like this is the most important undertone for the stock market, and with forward P/E of the S&P 500 around 18x it seems like the stock market can fall a lot if we compare to the 70s / 80s where similar environment existed.

I know that being bearish is good for content but macro always drives the stock market (indexes at least) … so is it free money to short the S&P 500 ?