The upheaval in stocks has been grabbing all the headlines, but there is a bigger problem looming in another corner of the financial markets that rarely gets headlines: Investors are dumping U.S. government bonds.
Normally, investors rush into Treasurys at a whiff of economic chaos but now they are selling them as not even the lure of higher interest payments on the bonds is getting them to buy.
The freak development has experts worried that big banks, funds and traders are losing faith in America as a good place to store their money.
No one is losing anything. Faith in America is dead. Any lag we’re experiencing is the time it takes to figure out the complexity of smoothly divesting from America. It’s simply impossible to trust this won’t happen again. You can’t put it back in the bottle. The US is fucked
Yeah, the first time around was like, shit… Okay maybe they’ll recover. Biden comes along, okay maybe it really was a fluke. Then the current nightmare ensues… Fuck, it wasn’t a fluke. Okay then time to decouple from the damage.
Most Canadians I talk to give significant likelihood that the US won’t recover from this. Even if it recovers from the fascism. At least not in a long time. We see that the system of checks and balances is more of a theatre that only appeared to be working, likely because capital wasn’t hungry enough. Right now the US looks like a functional dictatorship with no obvious path to recovery. Even if the Democrats take the house.