Not a drill. Trump and Musk could cause a global financial crisis even before we face another potential one with the debt ceiling - ThreadSky

brendannyhan.bsky.social • 13 days ago

Not a drill. Trump and Musk could cause a global financial crisis even before we face another potential one with the debt ceiling

Reposted from Paul Krugman

For those not familiar with how financial markets work, US Treasuries are the ultimate safe asset, used as collateral for everything. Even a hint that some Treasuries might not be honored could bring everything to a screeching halt 1/

Comments

billb2222.bsky.social•13 days ago

Perhaps that’s the point. Both have been in contact with Putin and are possibly Russian assets.

j-olynch.bsky.social•13 days ago

No idea, but I’d bet it’s just a ruse to trigger some volatility in the Treasury market and create trading opportunities for themselves and their friends who know the inside scoop. It’s all in the grift.

lilyisacat5.bsky.social•12 days ago

I think that's the point.

timjburrows.bsky.social•13 days ago

He doesn’t know the difference between treasuries and “the Treasury”

alibskysocial.bsky.social•13 days ago

😁😁

benedetto747.bsky.social•13 days ago

That's why the tech bros loaded up on Bitcoin.

naveenm94.bsky.social•13 days ago

“Biden and DEI caused the crisis”

wdking.bsky.social•13 days ago

Isn’t that the point. Musk and Trump probably believe if they undermine Treasuries then crypto will become a fiat currency.

megabeth18.bsky.social•13 days ago

unifawn73.bsky.social•13 days ago

Let the crisis commence. Seriously, if our current economic system was your girlfriend, wouldn't you realize how unstable she was and end the relationship?

fishlawyer.bsky.social•13 days ago

would it kill you to give us some context

dampscribbler.bsky.social•13 days ago

Dear God what have we done

jtadetroit.bsky.social•13 days ago

I went bankrupt 4 times, and stiffed my contractors, and I’m still in business: Trump, probably 🤷🏽‍♂️

annala2.bsky.social•13 days ago

Part of the plan.

polyparadigm.bsky.social•13 days ago

The risk with the debt ceiling showdown is that the US might default on its obligations for the first time.

So what Trump is proposing would front-load and intensify the same consequences we’d risk in a debt ceiling showdown, but also force us to pay a lot more when borrowing, tightening budgets.

Comments

Posting Rules

Reply