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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]So, trying to understand: Trump was fine with the market crashing as long as it was a vehicle to bring rates down, by way of getting people to invest in traditionally safe bonds. (The ultimate goal likely being tax cuts.)

The working assumption was that bonds would never be anything but safe.

But in a sign of how much credibility Trump has lost, bonds were not, in fact, safe — the bond market itself was tanking. So he backed off, sort of, but now we know something important that we hadn’t: The world no longer considers the US a safe place to put any money.

Do I have this right? 
[/quote]

Pretty much.  Bond markets decided they don’t trust U.S. debt anymore.  The next day Congress cleared the way to add $6 trillion more to the deficit.  Interest rates are going to be astronomical.

https://www.cato.org/blog/senate-plan-trap-house-lawmakers-shouldnt-fall-it

So much for “fiscal conservatives”

[/quote]

One of the theories embraced by the self-aggrandizing maga intellectuals like tanvi ratna, was that trump’s tariffs would help reduce our debt, revitalize manufacturing and lower rates. The tariffs would shock the stock market, causing investors to pour money into bonds, lowering the yields and allowing the fed to cut interest rates. Doge would cut a sizeable chunk, paving the way for tax cuts. Industry would blossom under tariffs.

The wheels fell off this model from the jump. Doge is realizing they can’t cut as much as they thought, interest rates will rise, inflation will rise, and stockholders trust Greek treasury bonds than U.S. bonds. Pretty bad. [/quote]

+1. The MAGA “intellectuals” are galactically stupid. There is no way tanking the dollar works out well for the United States. Interest rates are going to soar, along with inflation and unemployment.  Quite the trifecta. [/quote]

But blockchain will save us. [/quote]

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