I would guess that like most people, I have the slimmest understanding of bond markets, but as far as I can tell, the changes in the US market may well have been the motivation for Trump to "pause" his tariff plans (on everyone except China). See this article, for example:
U.S. Treasury bonds are being sold off. Here’s why it’s concerning.
I don't really understand why it seems no one can tell who is selling - there was speculation by some that it was retaliatory selling by China, and denials from other finance types that the pattern indicated that this was the likely explanation.
Here's an opinion column at the NYT about it:
What’s Probably Going On With the Volatile Bond Market
And how disingenuous is Bessent: that this was Trump's plan all along. And he denies the bond market had anything to do with it. Not to be trusted in the slightest.
Finally: many, many people suspect a lot of insider trading happened on the Republican side. Who would be surprised? No one, given that this administration seems to be the first to think that if you do it (pretty much) in the open, it can't be corruption.
2 comments:
when the sharemarket tanks money goes into the bond market. This is the first time it didn't. the $US declined also meaning investors were losing confidence in the USA hence the backflip
You were ahead of the curve on this one. These American paupers had to back down right away.Hilarious. The bond market has spoken and the President had to suspend his plans. These plans will need to be reworked and made more gradual. With reciprocity notified in advance rather than something that is supposed to happen after the fact by way of a formula.
This is a portent of what will happen to these guys if they don’t start closing down government departments like it is an Olympic sport. We know the current state of affairs must end by the early 2030’s. But it can happen at any time in between if the debt markets say so.
The Americans are running around all over the world causing trouble and acting like big shots when in fact they are horribly weak. They can’t afford to be waging war on Russia, Yemen, Iran et al, subsidising Israel, running welfare schemes for rich bankers or keeping hordes of parasitical public servants in the lavish lifestyles they have become accustomed to.
The 10% current tariff is okay and it should be followed up by getting rid of all sanctions and non-tariff barriers so that the 10% becomes a major revenue raiser. When everything has calmed down they can threaten in private one country at a time with 30% if they themselves don’t open up more.to American exports..
Think of the revenue they could collect if they got rid of all sanctions on Iran and just collect that very reasonable 10% on drones and dates coming in from Iran.
Every dollar counts for these guys. Their fantasy finance has gone on way too long.
Some part of me wishes Trump hadn’t blinked. And that he had brought on the inevitable crisis several years ahead of time. The longer they wait to deal with their debt crisis the more horrifying it will be.
Instead he was caught with his pants down and did a runner. These guys are not big shots. If you want to wage war you must balance ends and means. You can’t be operating under some kind of wealth delusion.
Post a Comment