Comment on Tumult in U.S. Treasurys shows Trump's 'big, beautiful bill' might be disaster

shawn1122@lemm.ee ⁨1⁩ ⁨week⁩ ago

I think the big takeaway here is that American exceptionalism is over. America’s aura has gone from fading to faded.

We are seeing bond yields go up and the value of the dollar go down, a rarity in our lifetimes. Typically when yields to up, the demand for US securities and, therefore, the US dollar goes up, increasing their value.

The fact that demand is not increasing despite better yields points to investors having lost faith in the US government to pay back its debts. A tax and spending bill that adds 3.8 trillion dollars to the deficit over 10 years does not help that.

We’re seeing more and more typically direct relationships become inverse relationship which really just point to one thing - people have lost faith in the USA.

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