Treasury bonds are “safe” to the extent the U.S. is viewed as stable and certain to honor its commitments. But we’re in thrall to a lunatic who just slit the throat of the global market for no reason & obviously thinks nothing of casually shirking obligations. So why would anyone view us that way?
Reposted from
Jesse Eisinger
Ok what’s going on here?
Yields are going up which means bond prices are going down.
Fewer buyers of the world’s safest asset.
Normally when the economy slows, there’s a flight to safety, not away from it.
Means the world may be abandoning America.
We are flirting with a true crisis.
Yields are going up which means bond prices are going down.
Fewer buyers of the world’s safest asset.
Normally when the economy slows, there’s a flight to safety, not away from it.
Means the world may be abandoning America.
We are flirting with a true crisis.
Comments
I have no idea what they tried to explain to him.
https://www.reuters.com/markets/us/trump-says-us-might-have-less-debt-than-thought-2025-02-09/
Short of military conquest, the US won’t default because it can pay with the printing press.
That’s inflation, sure, but not default
(But what seemed impossible a month ago — such as president Elon, to name one impossibility — now seems possible, but I really don’t think they’d do that, it serves none of their purposes)
What happens if the Administration chooses to default on a US Treasury dividend payment? What are the consequences? Who benefits?