once the debt has been refinanced it should* settle down a bit.
Nothing was settled during trumps first presidency, why would it all of a sudden settle now?
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Norfolk Island bakery reached out and offered a ācoffee loyalty cardā .
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Birthday suit.
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Why donāt the yanks just soft peg their Dollar to the Yuan. Say 1-6
Done.
Stop ā ā ā ā ā ā ā around with tariffs
Apparently Elon and Trump like a good pegging
Moron absolute ā ā ā ā ā ā ā . Moron.
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I was picturing Kevin from Sea Change going in to represent them in thongs and shorts, and opening with āI mean, fair suck of the savā
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I listened to Pod Save Americaās interview with Oren Cass, the conservative economist, this morning. It sounds as if the main goal is to gradually decouple from China. They want America to be the centre of everything and alienate this threat. I just canāt see how, with all these decades of trade and Chinaās growing and weaving into virtually every aspect of the chain globally.
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Not crazy ideologically. Totally crazy practically.
FYI: This is a good summary of just what happened in the bond market yesterday.
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At first, the normal safe haven mechanisms seem to function. Folks run from crisis-stricken equities into bonds and above all into Treasuries. Bond prices go up and yields go down.
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But then panic-selling hits the market that is supposed to act as the great liquid stabilizer of the financial system, the $28 trillion Treasury market.
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Frantic selling into the Treasury market causes the price of US Treasuries to plunge along with everything else, sending yields i.e. interest rates surging.
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This market action is abnormal in that it involves actors who would normally not be in engaged in panicky unwinds (hedge funds or foreign reserve managers) and it overwhelms the market-making capacity of actors (big banks, notably JP Morgan) who normally act as stabilizers in the market.
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The Treasury market becomes disorderly, with unpredictable movements and moments of āseizing upā when there are no buyers for packets of Treasuries that are offered for sale.
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The problem now is not just the price of Treasuries and the losses that they are inflicting but the liquidity of the market. Your ability to command a price for safe haven assets at all.
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Treasuries no longer offer a safe haven. The only place to run to is cash. The entire financial system begins to worry about the safety of its piggy bank, causing a comprehensive liquidation.
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The normal metabolism which āfundsā the US government by way of Treasury market ceases to function.
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The point of direct Fed intervention approaches, but Trump blinked first.
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Biden was making strong progress in building a coalition of economies to jointly push back on China. EU, Japan, STH Korea, Australia and the like. It was showing good progress.
Trump pushed all those allies away. Now China, South Korea and Japan are having joint discussions about local trade that excluded the US. He pushed three parties that have massive historical tensions into a partnership.
He basically landed back on Bidenās approach, but without any allied support. Just a weaker negotiating position than he had a week ago. Bonkers.
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Yikes.,The moment there were NO buyers for US bonds is scary. If the US cannot fund its budget, it collapses and takes the whole world down with it.
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Interpreting Trumpās intentions from his statements and actions is like trying to unravel the prophecies of Nostradamus, and (like Nostradamus) thereās a way large likelihood there IS no meaningful intent behind it all and itās just the babbling and impulses of a crazy man. Of course, thereās a flourishing industry in publicly sane-washing Trump, so thatās not going to stop people trying it.
I mean, whacking a 100% tariff on everything from China with zero notice and zero corresponding domestic industrial policy isnāt āgradualā at all, in any possible sense. And of course Trump continually says heās willing to deal if other nations revoke their supposedly unfair tariff policies, but why would he do that if his goal is to decouple?
Theres no plan at work, this is just the rankings of a crazed demented great uncle who watches too much right wing tv.
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21st century
Theyāll be using robots, minimal pesky humans involved.
Itāll be interesting what comes of this, because it seems China was keen to report it yet Japan and Korea down played the discussions. That was all last week, not sure if any more has come out.
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cool now seinfeld is muscling in on the āsimpsons predict the futureā bit
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Trump supporters in this thread
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The dumb still donāt understand that a tariff is just a tax THEY pay.
But itās not Trumpās fault!
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Oh for sure. I meant the goal of the conversative ideology and those whoād be feeding ideas behind the scenes, and I donāt think even they would like his daft heavy-handed chop-and-change approach.
Imaging those with freight on the water. Depending what day your shipment arrives it could be a different tax rate you pay. You might get unlucky and pay 100% and the next day your rival pays 25%.
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