It means borrowing costs here are rising, because the world doesn’t want to lend us money anymore. Because we are a failing business run by an *ss, and they don’t want to finance a country that started a trade war. It also means that stocks will sink, because their price reflects interest rates.
It also means the debt service on the deficit will rise exponentially throwing a huge monkey wrench into their "lower taxes, deficit reduction" budget discussions 😱🤣🤣😱
They will assume that all away in their comical projections, but it will be true. I smell a chance of default first, as I don’t know why dems would help raise the ceiling without major concessions.
It also means the fed can’t bail out our idiot president and stocks because even if they lowered the rates they control, the bond market trumps that, if you’ll pardon the expression.
Yep.
When people talk about the deficit, it's almost all the various bonds plus banks the US owes.
Borrowing to run the budget only works if people will buy your bonds. If nobody wants them because they worry you can't pay the yield (IE "the interest on the national debt" - that's mostly the yield
on treasury bonds) because your country is turning into a banana republic, backstabbing shit hole... you become a riskier borrower. And maybe Euros or GB Sterling might be safer, or gold...
Seriously, this is how your country's credit gets downgraded over and over.
No one in their right mind would invest in the US in the current climate.
There's far too much bull shittery going on to make any sort of case for why the US isn't circling the drain.
Shocker: it’s almost like America is being led by an Ugly American who insults our allies & praises BRICS tyrants!
This is what happens when arrested-development adolescent trolls elect a troll-in-chief who should be performing a Don Rickles insult-comic routine in a Vegas lounge, not running US.
Remind me when DT threatened to attack or invade China or Russia?
Did U forget weeks ago, when DT & JD Vance were insulting Zelensky, musing about invading Greenland, or offending Canadians by telling Premier Trudeau he could be Governor of the 51st State?
Sadly, MAGAT cultists voted for the bloviating conman, so will have to learn their lesson “the hard way” (and we have no choice but to go along for the ride).
You only get money from tariffs if:
1) anyone is bothering to sell you goods (Vis a Vis Landrover putting "shipments on hold")
2) anyone actually BUYS anything imported into America. And Trump just more than doubled ALMOST EVERY MANUFACTURED ITEM ON EARTH into America.
Look around any room.
Find
items under 25yo not made in China, or from Chinese components, or with Chinese tools or equipment.
I mean...chemicals, paint, tools, factory equipment (or that equipment was made with Chinese tools or equipment!), internet equipment, phones, electricity infrastructure, etc
After all WE sent our manufacturing capacity there so we didn't have to deal with worker's rights, unions, pollution, power generation and utilities, etc plus of course, we gave jobs to 100s of millions of underemployed Chinese, reversing Map Marxism.
Precisely. It takes about 40 days for shipped goods to make it to America, goods arriving today are seeing tariffs from orders placed possibly before Trump's inauguration.
Two months from now will be way bigger declines. Lots of small businesses are going to be wiped out in that time unfortunately
EU is recalibrating so sure we'll take some short term losses. This was obvious from the get-go.
The difference is we have other options, we're not at war with the world, so we can take our business to China, India, Canada, Mexico, SA etc.
The US is tariffing everybody (and the penguins).
No options
Still not understanding …Why does it mean that? Can it also mean some people left stocks and are sitting out a few rounds of potus reflexive crazy in cash? Be kind as you explain plse.
Look at Gold. It was going bonkers and moving like crypto for a while. It’s since cooled but not dropping. There is no real safe haven for cash unless it’s simply out of the market or just gone. That’s my understanding anyway, please correct me if I’m wrong.
Borrowing rates will go up. The larger concern is if the US dollar is no longer the world's reserve currency, we may be on the edge of a Great Depression level catastrophe.
Wellllll... America is, anyway.
The EU is looking at the massive growing sinkhole and stepping discreetly away. Look at the cancelling F35 contracts, to replace with European hardware.
Comments
That would be something you threaten with that Trump couldn't counter.
If every country called in its debt markers, guess which countries have the most debt Vs GDP?
When people talk about the deficit, it's almost all the various bonds plus banks the US owes.
Borrowing to run the budget only works if people will buy your bonds. If nobody wants them because they worry you can't pay the yield (IE "the interest on the national debt" - that's mostly the yield
Seriously, this is how your country's credit gets downgraded over and over.
However, when the government is in distress, this debt is no longer risk-free and interest goes up.
People are ditching USD, too. They're buying EUR.
There's far too much bull shittery going on to make any sort of case for why the US isn't circling the drain.
This is what happens when arrested-development adolescent trolls elect a troll-in-chief who should be performing a Don Rickles insult-comic routine in a Vegas lounge, not running US.
Remind me when DT threatened to attack or invade China or Russia?
Did U forget weeks ago, when DT & JD Vance were insulting Zelensky, musing about invading Greenland, or offending Canadians by telling Premier Trudeau he could be Governor of the 51st State?
https://bsky.app/profile/feefer2.bsky.social/post/3lhp677re7k2j
1) anyone is bothering to sell you goods (Vis a Vis Landrover putting "shipments on hold")
2) anyone actually BUYS anything imported into America. And Trump just more than doubled ALMOST EVERY MANUFACTURED ITEM ON EARTH into America.
Look around any room.
Find
I mean...chemicals, paint, tools, factory equipment (or that equipment was made with Chinese tools or equipment!), internet equipment, phones, electricity infrastructure, etc
I don't begrudge China.
This though is using your own intestines as a
Two months from now will be way bigger declines. Lots of small businesses are going to be wiped out in that time unfortunately
The difference is we have other options, we're not at war with the world, so we can take our business to China, India, Canada, Mexico, SA etc.
The US is tariffing everybody (and the penguins).
No options
Look at Gold. It was going bonkers and moving like crypto for a while. It’s since cooled but not dropping. There is no real safe haven for cash unless it’s simply out of the market or just gone. That’s my understanding anyway, please correct me if I’m wrong.
The EU is looking at the massive growing sinkhole and stepping discreetly away. Look at the cancelling F35 contracts, to replace with European hardware.