As an American I’m all for this. We need to feel harsh pain if we’re ever to correct our trajectory.
If you all haven’t already, the next few days is a great time to rebalance your retirement accounts. Stop investing in US federal bonds and focus on international mutual funds and (if available) state and local mutual funds.
I rebalanced last year and my IRA is doing fantastic. (Not today but overall)
lol. Here we go. Here we fucking go!
That seems like barely any.
Its not much numerically, but this is the first time a foreign holder of bonds has publicly announced they no longer have faith in the credit of the United States.
That is a big headline in the financial world. The entire international finance marletnis currently reassessing the stability of the US in a negative light. The only way out from here is down.
snowball effect, rollin’ down the mountain…
Dun-nuh-nuh-nuh-nuh-nuh-nuh-nuh- Dun-nuh-nuh-nuh-nun.
Every flood started with a little rain. America is a global pariah. Even American hate America. Just watch…
Now if Japan decided to offload on the other hand…
When you hear reported [Japan] owns [$x.xx] in US Treasuries, that figure isn’t a monolith. The Japanese government owns some, and Japanese corporations own some, and the Japanese people individually own some, and more. It would have to be a collective effort, and there would realistically need to be a financially sound alternative place for them to safely park their money
financially sound alternative
That’s an interesting concept in this context. What’s financially sound in a possible WWIII? As far as alternatives, I think it relative. Relative to a sinking ship that will suffer severe divestment from around the world, almost anything, really.
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Markets stay irrelevant longer than you stay solvent
Markets stay irrational longer than you can stay solvent.
T notes being up is a bad thing.
Bond yields increasing means that the cost of getting debt is increasing for the US. Higher yields means that bond holders think there is more risk that the bond won’t be paid back and want more interest rate. Same effect as a 550 credit score and an 800 credit score person applying for the same car loan. The 550 is gonna get a 21% loan and the 800 is going to get a like 10% loan. The lower credit score means they are more risky to loan to as they might default, so the interest rates are higher to compensate.
You’re 100% right. I’m a moron. lol.
$100 million is all it takes?!
I hope not, but sometimes it only takes one match to start an inferno.
Most countries probably had no playbook for dealing with a rogue US administration. They’re still looking for all the ways they have leverage over us and while no single country could probably bring us to our knees (well, except ourselves) they could definitely band together and send us back to the Great Depression era.
Very true
