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Tariffs Trigger Treasury Meltdown, Dollar ‘Close To Crisis’
Well, it's upon us: The moment when higher US yields aren't sufficient to attract buyers for Treasur
I don’t think the Fed is going to step in materially and save Trump from his shenanigans. That means kneeling to the king.
I suspect more turbulence going on until the end of this week / mid next week, until GOP steps in and tells him to shut it and pause majority of tariffs for 3-6 months. Maybe 10yr needs to exceed 5.00 – 5.50% for that to happen. At that point, Bessent and Navarro will be out. Fed to then comment they will provide support if needed, now that some people at the wheel have changed and tariffs are walked back.
I’m a complete layman, so most likely just wishful thinking from my part.
The Fed will never allow a disorderly collapse of the market for Treasuries. They’ll step in with liquidity (“extraordinary measures”) if it becomes absolutely necessary.
Give me some more of that shiny yellow stuff with date codes Fed can’t seize…
In keeping with today’s theme, I’m assuming you’re talking about yellow cake?
https://www.youtube.com/shorts/awJQmSeKlnM
My favorite part about that one, actually, was always the “I know! I know what to do with it, that’s why I got it wrapped up in this special CIA napkin!” I don’t know why, of everything hilarious about that sketch, that particular line gets me, but it always has.
One of the very best parts of what is my favorite Chapelle skit.
I hope the Fed doesn’t bail him out and we finally capitulate.
If not reserve currency, then … oh, we’re almost there … H touched on it, but without reserve currency can MMT (bigly deficit funding) work? if US$ is just another currency, … ouch! 30yr auction is a signpost imho -who buys and at what yield? I’m not buying, but not selling either … yet.
Is this (tarriffs/madness) all cover, for an unwind that was going to happen anyway? The popping of the massive bubble in financial and property assets with leverage out the wazoo. That somehow it gets to be pinned on foreigners (who’ve DUPED US FOR YEARS!!) according to the script. That the “medicine will be worth it”, is just a lie and projection, known full well by the true dispensers? Nothing else seems to make sense. I keep thinking it cannot be this easy for one person to wreck an entire global financial structure.
Supposedly we didn’t goad Japan into war, and their attack on Pearl Harbor. Are we goading China? Wars don’t make sense for most people involved, just the ones pulling the levers (and their friends). Is that where we are?
Amen
It’s a bit idiotic for the idjut in the WH to rattle the cages of holders of some $10T of UST’s. Once bitten twice shy! You’re supposed to speak softly and carry a big stick not growl loudly and not understand how small your stick is. Let’s hope there can be some recovery in 10yr corporate spreads to UST from the 200bp blow out over the last two months