US Treasury bond market wobbles: is the era of America as a safe haven ending?
The treasury bond mess: is this the demise of the US as a safe haven?
The Trump administration's attempt to prop up Treasury bond prices by ramping up buybacks has failed to stem rising yields, with the 30-year bond near its highest level in two decades. This comes as interest payments on the $40tn national debt consume a record share of federal spending, and foreign central banks reduce their holdings. The piece examines whether the US is losing its status as the world's safe haven, with private investors adding volatility and domestic policies undermining confidence.
The main threat to treasurys’ status as the paramount store of value in the world, though, comes from within.
- exceptione
> And he hinted at a novel approach to monetary policy, suggesting that “the ultimate intervention is our military”.
Yes, that was both funny and tragic. But it also demonstrates why smart people made him president: he is beyond perfect for redirecting attention. By burning the institutions down and by severing international relations, a certain class of people can finally disable the corrective and limiting mechanisms that keep them in check. Even if that means the whole country needs to be burned down. Zero sum in business, zero sum in church, zero sum in state governance.
- pu_pe
Almost everything this administration does is inflationary. You cannot have tariffs, oil crisis, tax cuts, high debt spending without long-term investors getting worried that they won't meaningfully get their money back in 10 or 20 years from now.
- cjs_ac
The vaguepost by Bessent in today’s Financial Times looked pretty weak: https://www.ft.com/content/cb865200-1a06-40be-86a3-10ee2bb05...
- Havoc
They’re just lining up the Xth once in a lifetime crisis for millennials…
- jmclnx
All that has to happen to fix this is taxes. The ultra rich tax's need to be raised to a level the US had before Reagan. Instead the people running the US want the poor and middle-class to pay for everything and enrich the rich even more.
Until that is fixed, the US will end up as a banana republic with lots of nukes.
> rates on mortgage loans and other long-term lending across the economy – are walloping his popularity, helping freeze the housing market
Looking like 2007 again ? The GOP loves flirting with creating a massive depression.
- nsvd2
The bottom line is that the country cannot spend more than it makes in tax income indefinitely and anyone who says otherwise is delusional. Unfortunately, I think the reckoning for all this debt will come sooner than many people expect.
- ck2
remember the utter destruction of the economy by the Bush administration?
everyone was so relieved when he was finally flown away for the last time by Marine One, he couldn't do any more damage
well this is round two, just keep voting for this kinda of garbage corruption
pray for a full impeachment because otherwise two more years is going to leave a burning dumpster fire of a country (but Vance maybe even worse)
his drapes! his golden statues! his ballroom! his ARC! his helipad! his flagpoles!
his image on passports, gold coins, $250 bill, park passes! 100 foot banners of his image on federal buildings!
renaming warships and airports after him while still in office
ONE BILLION DOLLARS in taxpayer funded renovations for all his nonsense in DC
ANOTHER BILLION DOLLARS stolen from nuclear missile maintenance for his QatarForceOne
$6 Million per day in pardons and other grift
$2 Million every weekend for his golf outings
go on, tell me any other administration from any party was ever this insanely corrupt
now imagine what else he is doing to the country, selling federal land, got the CIA mucking around in Greenland and who knows where else
and he's definitely doing Cuba after November
- josefritzishere
TLDR: yes.