The upheaval in stocks has been grabbing all the headlines, but there is a bigger problem looming in another corner of the financial markets that rarely gets headlines: Investors are dumping U.S. government bonds.
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"The freak development has experts worried that big banks, funds and traders are losing faith in America as a stable, predictable, good place to store their money."
The whole WORLD's lost faith in America's stability. I wouldn't buy Treasurys either.
I remember a news show that was asking people on the street: what is the national dept and 99% didn't know and one teenager said, what dept? We give money to all other poor countries.
Yes. This is why BRICS has pumped so much money and effort into the corruption and promotion of the Republican Party. They want America completely out of the way.
What investor in their right mind would think the US is a stable place to invest? We are watching the fall of the United States of America in real time and it is being broadcast by their reality show president. 🤦🏻♀️
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To whomever is dumping U.S. Government bonds: RELAX!!! When has Donald Trump ever not paid his bills? You’re acting as if he’s been involved in past bankruptcies or something.
Old bond trader here. There is an avalanche coming. Trump is going to get schooled. Right now, the US spends more on debt than anything else. More than defense. When the ten year bond is 5.5 or 6% . The bond losses will implode the financial system. Many firms holding HTM large losses on them.
So, I feel like a doop. I sold off some of my ETF index funds back in March and bought into bonds, because that was traditional financial advice when you didn't want to be in the equity market.
Realize this, the world now knows that our own American CEOs along with the 77 million voters who voted for Trump, they are all undependable. Our country is in deep decline and we need to stop this sinking ship before it reaches bottom
BTW remember the housing crisis? ok a much bigger bubble exist in the commercial property market .....this crap is going to make it implode that much faster ...if it does Trump Presidency ( or crimewave ) effectively over
When you try to curb the trade deficit (by imposing tariffs), you are also cutting off the inflow of capital that funds our federal budget deficit. Rushing interest rates are the natural result. Americans will have to save more, and rising rates are part of what makes that happen.
US has scared investors off. They won’t come back with Trump around and maybe not at all. China always wanted to be the best place to invest. Now it will happen.
Posting that you want AMERICA to go away is NOT about the current administration. It’s about my country which is NOT this administration. Blatant USA hatred.
You got me wrong there...its just a wordplay using the MAGA term...with the current actions of the adiministration, it seems that instead of Making America Great Again, they make America less relevant by damaging its economic importance and damage their reputation of being a trustworthy partner
Well, if the country is going through unprecedented economic change, that seems to be failing miserably, by the way. Why would anyone hold bonds in that country?
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Why would anyone be concerned about the stability of the US economy? It’s not like we have a rabid monkey with a team of fluffers running the country. 😄
Crashed bond market and devalued dollar makes existing debt easier to refinance. But it also makes it harder to acquire new debt, and makes international investors flee.
This seems like a set of desired outcomes by project 2025 types.
The entire headline for this article is a joke 😆
The USA economy is being crashed intentionally, like the Titanic being purposely steered toward an iceberg. Felon-rapist-traitor-president advises, "BE COOL," as if he's 12 and trying not to get caught sneaking his father's cigarettes 🙄
Take that, Country! This is what happens when a country forgets to educate its masses and we have a majority of idiots for voters and they vote for a convicted felon, known grifter!
Trump is a grifter who knew how to take advantage of the situation - the real issue: uneducated voter majority!
No one should be surprised by this. The U.S. economy was a stable bet just 3 months ago. Trump (and republicans who are too spineless to stop him) has turned the U.S. into an unstable economy and government bonds are not a good investment. Most economists believe we are already in a recession.
The Freak is in the Oval Office. Divesting of investments in a country that suddenly decided not to hide its' fascism and corruption any more is Responsible Governance.
It's unfortunately true. Yes China and other treasury holders are dumping but another issue is whether its balanced by buyers. If US is stepping away for awhile, we should hope the world economy becomes more eurocentric rather than sinocentric. I value democracy so that's my opinion at least.
Speaking to reporters on Air Force One Friday night, Trump said “The bond market’s going good. It had a little moment, but I solved that problem very quickly. I’m very good at this.”
A shit show. Just the threat of tariffs hanging over global trade is going to be enough for people to doubt the reliability of the US. Even when he leaves office, they will not trust us any longer.
And the dollar has gone from 98 cents to 88 cents on the Euro in the 80 days of #Trump. The cult of Trump will get the message sooner or later but it will be too late
While China holds the most US debt (bonds), Japan, Canada and the EU also hold lots. All of these countries selling off a bit has a huge impact on the US bond market. And that's part of the plan to fight back. Trump can drop the tarrifs or round two starts in 90 days.
When you have as much debt as the US has, you are relying on being the reserve currency. Lose that and you quickly become just another banana republic looking for an IMF bailout.
A bit exaggerated maybe, but higher rates boost the deficit even more. 1% extra is 350 billion a year more in interest.
He has damaged our reputation and other countries don't have confidence that we are stable and trustworthy. Damage can't be undone without years of work starting after Trump leaves. If he leaves.
Why would confidence in America be fading?? Can’t imagine why. Total headscratcher. Completely dumbfounding. We’ve made such incredible decisions recently! We’ve put such ethical, brilliant folks at the helm of our robust, engaged society! We’re doing so so so so so so so so so goooooooooood kill me
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In a corner of this world, there are those waiting for a bite to satisfy their hunger and a drop of water to save their lives.
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The whole WORLD's lost faith in America's stability. I wouldn't buy Treasurys either.
Want trust back? Get rid of Trump & Republicans
REMOVE 47 FROM OFFICE AND REPLACE HIM WITH PRESIDENT 48.
MAY 1st ‼️MAY DAY ‼️PROTESTS BEGIN. SEE HERE FOR MORE INFO
https://maydaymovementusa.org/
In a corner of this world, there are those waiting for a bite to satisfy their hunger and a drop of water to save their lives.
Your donation today is not just charity, but a relief from the pain. 💔🙏🙏
https://gofund.me/6d7836e0
Thanks, Maga.
"Pride goeth before destruction, and a haughty spirit before a fall. (Proverbs 16:18)"
See the problem America?
#ImpeachTrump
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I would counsel everyone to avoid any kind of investment in the US right now as the country is being run by self serving gangsters.
No-one trusts the US.
Not a safe haven. Ffs. No shit Sherlock.
no one should have confidence in us.
we are stupid, undependable people now, led by incompetent, immoral monsters.
who is surprised?
this is the harm that won't go away even if we manage to remove Komrade Krasnov.
This seems like a set of desired outcomes by project 2025 types.
The USA economy is being crashed intentionally, like the Titanic being purposely steered toward an iceberg. Felon-rapist-traitor-president advises, "BE COOL," as if he's 12 and trying not to get caught sneaking his father's cigarettes 🙄
Trump is a grifter who knew how to take advantage of the situation - the real issue: uneducated voter majority!
Trump thinks he has control over foreign nations. He does, most . . .
but not all.
The world is moving on without the US.
US better hope Russia & N Korea & Iran buy lots of American goods to make up the difference
Maybe Kim Jung Un can buy some Jack Daniels Whiskey to help Tennessee
A bit exaggerated maybe, but higher rates boost the deficit even more. 1% extra is 350 billion a year more in interest.
In a corner of this world, there are those waiting for a bite to satisfy their hunger and a drop of water to save their lives.
Your donation today is not just charity, but a relief from the pain. 💔🙏🙏
https://gofund.me/6d7836e0