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All the bond buyers have a strategic interest that the US keeps its position of power but since this comes with unrealistic growth expectations, i cant imagine
by throwawayqqq11 1y ago
All the bond buyers have a strategic interest that the US keeps its position of power but since this comes with unrealistic growth expectations, i cant imagine them all holding on to it. And then comes the panic selling...
Trump is kind of the perfect storm, it looks almost deliberate. I wonder if right wing media will still be able control the narrative and place the blame on some other minority in all the down trend -- wether the US might recover or stay on that trajectory.
- atoav 1y ago> I wonder if right wing media will still be able control the narrative and place the blame on some other minority in all the down trend That might depend on how much more dirt his followers are willing to eat for Trump. And this is somewhat hard to predict, many of them are already so deep in the con there is a significant sunken-cost fallacy at play. But I am pretty sure all of that has limits as well.
- Newlaptop 1y agoWhere does the money go though? Europe has its own problems, and US instability will magnify them. The last 20 years have shown that China is essentially uninvestible for foreigners. Japan maybe offers relative stability but without growth. Commodities might seem like a safe haven, but will decline in value in a recession. For the pension funds, insurance companies, and sovereign wealth funds who hold the hundreds of billions of dollars of US debt instruments, what are the realistic option? Buy billions in gold? Invest in Japan, South Korea and India? Bet on a European turnaround? Yolo it on fartcoin? I'm not sure what the safe haven is when America goes bankrupt.
- owl_vision 1y agoSwitzerland?
- toomuchtodo 1y agoEurobonds until India and/or Africa have economies with sovereign debt with similar risk.