Greendland - why not?
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Anonymous
That's cute. And hilarious. Trump is not a businessman. Good, bad or indifferent. He is now and always has been a snakeoil salesman. And you bought it. |
Anonymous
The utter contempt of allies who have stood by us for 80+ years? |
Anonymous
Could someone explain the dumping of treasuries? If I have a bond and sell it, someone else has to buy it, and the cost to America is the same- the interest on the bond. |
Anonymous
These are sovereign states that trump threaten to invade and murder. Sovereign states with a 80 year treaty of mutual protections. These states have other options. Put a sovereign state in a situation where it facing death and it will fight you to the death. |
Anonymous
Dumping US treasuries drives the price down(rate). It also impacts the US’s next sale of t-bills and they will have a lower price. It can quickly become a self reinforcing death cycle. The other problem is you have to believe republicans will stand behind US debt and not just walk away. Many people think Trump and republicans will just walk away and say if you want your money come at me bro. |
Anonymous
What you leave out is that most of these bonds are held by banks as their Tier-1 capital, which backstops their more risky loans. So if their goal was to drive down treasuries prices and that was effective, the losses would show up on their own balance sheets very quickly and regulators would have to declare them insolvent. Banks loath to take losses one Tier-1 when they can just hold to maturity and not reinvest. That’s why no one tries this in any coordinated way. And none of this even considers the 3rd Party risk. All of these global banks are in bed with each other. None wants to see the other go down, Trump or no Trump. Bessett knows this, which is why he is so smug about it. |
Anonymous
When the panic hits banks will stampede to get out US treasuries. These things happen slow and fast. All it takes is a bank and a hedge fund manager. |
Anonymous
Sure, like Linus waiting for the rise of “the Great Pumpkin”. This is definitely the year. |
Anonymous
We should also remember that he completely sucks at it. He destroys people and businesses through incompetence and stupidity but always makes sure that he gains personally. It’s no different now that his business is our country. |
Anonymous
Yes, he's damaged the US considerably. Him backing off doesn't change the serious serious damage both militarily and economically. We are much weaker and much more financially vulnerable because of his actions. |
Anonymous
Trump just figured out he got rolled:
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Anonymous
+1 What PP leaves out is that there are many acceptable sources of Tier 1 capital that are not US Treasuries (ex: German bundes). Banks are typically multinational conglomerates--they hold many US treasuries but they have other options. If they and other investors dump US assets, bond yields would skyrocket, the cost of servicing the 36 trillion in US national debt would become crippling and the US borrowing costs would go through the roof. |
Anonymous
For the short term, I would expect Europe to draw down is stock of Treasuries. They don’t want a panic either while they’re holding trillions of dollars worth of them. China has been doing this for several years now. But as buyers disappear, yields will go up. |
Anonymous
Republicans would default and walk away from the debt. You know it is coming. Also coming is the US pulling out of USMCA. |
Anonymous
It’s “bunds”, not “bundes”. There’s only 1.3T bunds in existence. Certainly, not enough to go around. Anyway, after all the made-up drama, the US 10 yr sits at a boring 4.23% today, down about 0.012% from yesterday. And well the Biden high of 5% in 10/23. |