Treasury Yields Soar as Ballooning U.S. Deficit Worries Wall Street

[hshdhdhj4444]

The article mentions the yield is the highest since November 2023.

If I understand it correctly, this is different, however. In November the Fed was trying to increase rates to bring down inflation. But the high yields now are the result of a lack of private demand.

If that is indeed the case it’s very likely worrying.

[nblgbg]

Ofcourse that is the case, with tariffs the demand for dollar also going down and leads to this !

[onecommentman]

Some historical context over 40 years:

https://www.macrotrends.net/2521/30-year-treasury-bond-rate-...

[tossandthrow]

You need to the context of how much debt the government has.

4% on a couple of trillions is vastly different from 4% on 35 trillion.

The metric you want to surveil is how much of the US tax revenue that goes to servicing this debt

[mindslight]

Does anyone else have the sickening feeling that their actual plan is to straight up destroy USD, with the looters fleeing to hard assets and foreign/crypto currency, and the plebs' currency crisis then serving as the justification for naked fascism red in tooth and claw? With the narrative then shifting to the usual "Democrats did this! And we tried to stop it but we were too late!" nonsense, backed up by an army of "AI" spambots.

The tariff tantrum, destroying US soft power institutions with DOGE, alienating all of our allies with petty feuds, the constant framing of the United States' enviable global positions as bad things. None of these things make any sense if you actually want the United States to succeed.

[jameslk]

This present issue has been caused by decades of bad fiscal policy by both parties:

https://fred.stlouisfed.org/series/GFDEGDQ188S

Here for example, the Congressional Budget Office, forecasted federal debt as a percent of GDP would continue to rise unchecked, back in 2023: https://www.cbo.gov/publication/59014

The only presidential politician who sounded the alarm was Ross Perot, all the way back in the 90s.

Lyn Alden has been talking about this for a long time. If you want a good intro to the problem, I’d recommend this article of hers:

https://www.lynalden.com/september-2024-newsletter/

[jbverschoor]

It’s kind of logical right? The dollar was misused over 50 years. What’s the best way to get rid of your debt? Make the usd worthless. Various methods, but one: have another reserve currency in the world but make sure you have enough of that to stay powerful.

He even gave the advice not to sell that one.

It’s a good but toxic strategy. Give freely printed dollars in exchange for resources over 50years, and then make it worthless.

[sorcerer-mar]

They make a lot of sense if you consider that the man up top is an actual stupid person and he is surrounded by sycophants. He has suggested for decades that he understands trade deficits to be identical to subsidies. He prefers mob-boss dynamics as opposed to mutual alliances. He legitimately thinks he can engineer a market economy's prices with his closed-door meetings with CEO buddies.

It is gobsmackingly dumb, but remember we have no evidence of him being anything other than gobsmackingly dumb. It's a very parsimonious explanation of everything he does.

[9283409232]

I've been saying for a while the goal is to eventually back the dollar with cryptocurrency that they all own.

[Yeul]

Trump having a plan would be the best outcome.

[nemothekid]

>Does anyone else have the sickening feeling that their actual plan is to straight up destroy USD

Stephen Miran, the chair of the Council of Economic Advisers under Trump, is pretty much trying to do this. He published 'A User's Guide to Restructuring the Global Trading System', and it pretty much outlines why they should destroy the USD - in order to bring manufacturing home, so that the warhawks will no longer have any reason to not start a war with China

[ty6853]

Anyone with 0.1% of a brain switched to hard assets during the COVID ~0% money printing mania.

[6510]

I'm told the Wall Street folk will need to buy bonds or Trump will sink the ship. The question is, how do you expect him to refinance 7T in debt by the end of 25? Implode the dollar?

[Yeul]

To be fair the US is too big to fail. As Europe was forced to "do whatever it takes" to save the euro and bail out Greece the entire world can't stand by and watch America sink.