- cross-posted to:
- BoycottUnitedStates@europe.pub
- cross-posted to:
- BoycottUnitedStates@europe.pub
Investors are selling off bonds from the U.S. government, as part of a trade known as “Sell America.”
The United States government has had to pay more to borrow in the global debt markets. On Wednesday, the Treasury department found that there was tepid demand for an auction for $20 billion worth of bonds, and ended up paying a slightly higher interest rate (or yield) than expected.
This has spooked markets. Yields on 30-year U.S. Treasuries have spiked above 5% this week — an unusual, and unsettling, surge in the price that the U.S. government pays on its long-term debt. An increase in bond yields is particularly damaging to the economy because it jacks up the interest rates on many things that consumers pay, such as on mortgages and other loans.
My brother told me a while back that Canada and the EU were cooperating together to not buy US bonds, in retaliation for the tariffs. Back when HitlerPig suddenly put a 90-day pause on most of the tariffs it was directly because they were freaking out about what was happening in the bond market.
Whether it’s true that it’s deliberate retaliation or not, it’s a hell of a brilliant strategy against the Pig since higher interest rates on US bonds (basically like having your credit card’s rate go up, increasing your minimum payment due) could put the US in deep deep doo doo.
It was deliberate. Our PM is a financial guy who knows what he’s doing. It wasn’t just with the EU either. He got Japan to join in as well.
Totally got Trump by the orange balls.
Of course it’s deliberate. Trump launched a trade war against the world and massively overplayed his hand. This is going to be devastating to the US economy for decades. But at the same time, they are cancelling the constitution so citizens don’t get to vote anymore, they’re just along for the horrible ride.
The reason I thought it was notable when my brother told me that is because all the articles I’ve seen, including this one, imply that the only reason bonds aren’t selling is just that people are nervous about the unstable situation and unreliability of the US to honor the debt. They don’t mention a coordinated act of retaliation by a group of governments.