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To elaborate on your last point, high yields are macroeconomically detrimental on several fronts. On one hand, They provide a safe haven for Capital which dimin

• JumpCrisscross 2y ago
  Yup. Basically supply contraction puts people out of work, which requires lowering rates by selling bonds, but exporters under duress are also dumping their bonds, which means you need to print more money than you otherwise would to push rates down. Those dollars create inflationary pressure whose solution is raising rates. But you can’t because of the supply disruption. Basically, Trump and Musk have engineered stagflation.
  • s1artibartfast 2y ago
    One thing I really struggle to understand is the economic arguments for large national debts, which seem to be a mainstay of modern nations. Is it as simple as countries really cant help themselves? It seems so clear to me that the economically superior position is lower deficit spending, extremely low treasury yields, high investment, and high growth. Am I severely underestimating the effectiveness of government spending at stimulating growth? It seems that large deficit spending should be reserved emergency stimulus for correction, not a feature of healthy growing economy, and their use during "good times" diminish capacity for use in the "bad times"