Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I know we have a lot of tariff threads. I’m shocked more people are not aware or are talking about why Trump reversed course.
His tax cuts!!!

When the markets tanked on Wednesday two crazy things happened, one item was particularly bad.
Normally during market crashes there is a “flight to safety” to US Treasury bonds. That causes rates to go down because there is so much demand.

Instead rates went up, meaning no one wanted US Treasuries because the finance bros didn’t feel the US was safe!

This is something Trump talked a lot about, slowing the economy to refi debt at lower rates….. the exact opposite happened in real time. Rates went by 1% which is massive.

That lack of flight to safety means, the US was no longer the world’s currency.

That also means rates were going to spike and the 1T tax cut would not pass. Meaning Trumps signature legislation would not have passed. I see all the market manipulation threads and posts, but the real story is the failed treasury auction.

That means higher rates for CC and mortgages.

I know people only look at the stock market or sensational stories…. But the real story is the US might have lost our reserve currency status and worst of all our President proved his priorities (tax cuts) and that he was weak…. We might not recover from liberation day.

This should not be a political discussion in a political thread, but it should scare everyone!

I agree, OP. Trump has really screwed the US

Actually, Biden screwed us. He used the dollar as a weapon against Russia for its invasion of Ukraine.

Now other countries are taking note and re-evaluating if they want to hold the reserve currency that can be weaponized against them anytime they cross the U.S.

Sorry to be the bearer of bad news to you. You democrats were told this might happen when you did it, but it felt so good then, huh?

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I know we have a lot of tariff threads. I’m shocked more people are not aware or are talking about why Trump reversed course.
His tax cuts!!!

When the markets tanked on Wednesday two crazy things happened, one item was particularly bad.
Normally during market crashes there is a “flight to safety” to US Treasury bonds. That causes rates to go down because there is so much demand.

Instead rates went up, meaning no one wanted US Treasuries because the finance bros didn’t feel the US was safe!

This is something Trump talked a lot about, slowing the economy to refi debt at lower rates….. the exact opposite happened in real time. Rates went by 1% which is massive.

That lack of flight to safety means, the US was no longer the world’s currency.

That also means rates were going to spike and the 1T tax cut would not pass. Meaning Trumps signature legislation would not have passed. I see all the market manipulation threads and posts, but the real story is the failed treasury auction.

That means higher rates for CC and mortgages.

I know people only look at the stock market or sensational stories…. But the real story is the US might have lost our reserve currency status and worst of all our President proved his priorities (tax cuts) and that he was weak…. We might not recover from liberation day.

This should not be a political discussion in a political thread, but it should scare everyone!

I agree, OP. Trump has really screwed the US

Actually, Biden screwed us. He used the dollar as a weapon against Russia for its invasion of Ukraine.

Now other countries are taking note and re-evaluating if they want to hold the reserve currency that can be weaponized against them anytime they cross the U.S.

Sorry to be the bearer of bad news to you. You democrats were told this might happen when you did it, but it felt so good then, huh?

Anonymous wrote:

Anonymous wrote:I know we have a lot of tariff threads. I’m shocked more people are not aware or are talking about why Trump reversed course.
His tax cuts!!!

When the markets tanked on Wednesday two crazy things happened, one item was particularly bad.
Normally during market crashes there is a “flight to safety” to US Treasury bonds. That causes rates to go down because there is so much demand.

Instead rates went up, meaning no one wanted US Treasuries because the finance bros didn’t feel the US was safe!

This is something Trump talked a lot about, slowing the economy to refi debt at lower rates….. the exact opposite happened in real time. Rates went by 1% which is massive.

That lack of flight to safety means, the US was no longer the world’s currency.

That also means rates were going to spike and the 1T tax cut would not pass. Meaning Trumps signature legislation would not have passed. I see all the market manipulation threads and posts, but the real story is the failed treasury auction.

That means higher rates for CC and mortgages.

I know people only look at the stock market or sensational stories…. But the real story is the US might have lost our reserve currency status and worst of all our President proved his priorities (tax cuts) and that he was weak…. We might not recover from liberation day.

This should not be a political discussion in a political thread, but it should scare everyone!

Yup a lot of people are just walking around with their eyes wide shut-this administration is scary. Pay attention-they are trying to distract everyone with the craziness and people are missing the big things.

Anonymous wrote:Trump and MAGA are morons. They suck.

Anonymous wrote:What do you think happens when the US dollar becomes non reserve currency ?

Anonymous wrote:

Anonymous wrote:I know we have a lot of tariff threads. I’m shocked more people are not aware or are talking about why Trump reversed course.
His tax cuts!!!

When the markets tanked on Wednesday two crazy things happened, one item was particularly bad.
Normally during market crashes there is a “flight to safety” to US Treasury bonds. That causes rates to go down because there is so much demand.

Instead rates went up, meaning no one wanted US Treasuries because the finance bros didn’t feel the US was safe!

This is something Trump talked a lot about, slowing the economy to refi debt at lower rates….. the exact opposite happened in real time. Rates went by 1% which is massive.

That lack of flight to safety means, the US was no longer the world’s currency.

That also means rates were going to spike and the 1T tax cut would not pass. Meaning Trumps signature legislation would not have passed. I see all the market manipulation threads and posts, but the real story is the failed treasury auction.

That means higher rates for CC and mortgages.

I know people only look at the stock market or sensational stories…. But the real story is the US might have lost our reserve currency status and worst of all our President proved his priorities (tax cuts) and that he was weak…. We might not recover from liberation day.

This should not be a political discussion in a political thread, but it should scare everyone!

I agree, OP. Trump has really screwed the US

Anonymous wrote:The U.S. dollar's days as a reserve currency were numbered from the moment the Biden Administration weaponized it by seizing Russia's dollar reserves (basically telling Russia "the dollars you have aren't any good anymore until we tell you they're good").

No sane country -- certainly not the powerful countries like China, India, Saudi Arabia, Brazil, etc., would ever count on U.S. dollars being a reserve currency after that move.

This doesn't mean the end, though. A country doesn't need to control the international reserve currency to be wealthy and successful. It's just going to be different from now on. Prepare accordingly.

Anonymous wrote:The U.S. dollar's days as a reserve currency were numbered from the moment the Biden Administration weaponized it by seizing Russia's dollar reserves (basically telling Russia "the dollars you have aren't any good anymore until we tell you they're good").

No sane country -- certainly not the powerful countries like China, India, Saudi Arabia, Brazil, etc., would ever count on U.S. dollars being a reserve currency after that move.

This doesn't mean the end, though. A country doesn't need to control the international reserve currency to be wealthy and successful. It's just going to be different from now on. Prepare accordingly.

Anonymous wrote:The U.S. dollar's days as a reserve currency were numbered from the moment the Biden Administration weaponized it by seizing Russia's dollar reserves (basically telling Russia "the dollars you have aren't any good anymore until we tell you they're good").

No sane country -- certainly not the powerful countries like China, India, Saudi Arabia, Brazil, etc., would ever count on U.S. dollars being a reserve currency after that move.

This doesn't mean the end, though. A country doesn't need to control the international reserve currency to be wealthy and successful. It's just going to be different from now on. Prepare accordingly.

Anonymous wrote:Reserve currency was already on the way out. Trump just threw some more fuel on the fire. The real issue was the sanctions we put on Russia and others that lead to a wave of de-dollarizing.

Anonymous wrote: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?