The reality that global trust in US Treasuries could ebb slowly and then collapse suddenly has been a risk staring everyone in the face since the first Trump presidency. Yet a lot of people who should have known better simply assumed that US fiscal stability is somehow immune from political chaos - ThreadSky

aphclarkson.bsky.social • 1 day ago

The reality that global trust in US Treasuries could ebb slowly and then collapse suddenly has been a risk staring everyone in the face since the first Trump presidency.

Yet a lot of people who should have known better simply assumed that US fiscal stability is somehow immune from political chaos

Reposted from Ulrike Franke

This is a big development. Only recently, there was quite a big rift between market ppl and foreign policy ppl, with the former throwing a party and the latter saying the sky is falling.
Now, a finance friend just messaged me saying “I have never see US assets been considered this toxic”.

Comments

koenb82.bsky.social•1 day ago

Trust is something which usually returns very quickly.

Oh wait...

timfinnerty.bsky.social•1 day ago

Would also suit #Putin just fine.

tpo-asd.bsky.social•1 day ago

📌

jimcarroll.com•1 day ago

I'm going to share this image till I am blue in the face.

drwilke.bsky.social•1 day ago

This storm has been so obvious but I've felt like Chicken Little. But where to find a safe place for your money before the collapse?

blubball.bsky.social•1 day ago

its known US politics can behave incredibly badly and go unpunished but not THAT badly .

marymaggie.bsky.social•1 day ago

They haven't paid international bills for contractual commitments already carried out by USAID contractors. Does their credit rating drop?

d-cym.bsky.social•1 day ago

The market starting to realize that Trump might do what he says, not what Wall Street wants, means that they have to take seriously his talk about defaulting on US debt.

melissahbuckner.bsky.social•1 day ago

🎯

cfbieritz.bsky.social•1 day ago

"Slowly" should be emphasized. Theoretically, you're not wrong, but Russia has shown us: Countries can be both weaker and more resilient than analysts are able to anticipate. US is hurting itself right now and will be weaker, but they are still able to wreak incredible havoc on Europe.

plasticpraetor.bsky.social•1 day ago

Nonsense, look at the scale of our empire! The Denarii is the preferred currency around the known world, and our empire is eternal, all praise the Pax Romana!

waterclosetl.bsky.social•1 day ago

I think the US government threatening to cease paying it's obligations should have been treated as a threat rather than an exhausting bit we do every couple of years. I thought our credit rating would have gone down much more by now.

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