How the US sanctioned itself in Ukraine

Asia Times ^ | 1/10/25 | David Goldman

[EnderWiggin1970]

Surging US Treasury yields are the main driver of global markets, depressing stock prices, pushing up the US dollar exchange rate, and threatening homebuilding and other rate-dependent economic activity in the United States. As rates rise, moreover, the US Treasury deficit – already above 6% of GDP – will increase. Interest payments on the federal debt rose to $1 trillion from $400 billion in 2021, adding to the blowout federal borrowing requirement of $1.8 trillion.

Foreign central banks meanwhile have cut their holdings of US government debt, adding to upward pressure on yields – by a painful 0.8 percentage points, according to my calculation. The seizure of Russian foreign exchange reserves in 2022 led central banks to shift out of dollar assets. The reserve seizure probably did more damage to the US economy than to Russia’s.

[EnderWiggin1970]

The government in Washington is heavily dependent on foreign central banks to finance its deficits. But as it earns a reputation for stiffing its creditors, the creditors not unreasonably are getting rid of their US debt. (It's very strange how so many US citizens, abused and persecuted by this same government, then keep funding it with their own T-bill purchases.)

[Paladin2]

Uh, short term yields are significantly lower.

As always, YMMV.

[Paladin2]

The FED and Yellin’ are very busy trying to screw Trump and MAGA Americans.

[BipolarBob]

It doesn’t matter, we must protect BlackRocks investments in Ukraine at all costs.

[McGruff]

[BobL]

“It doesn’t matter, we must protect BlackRocks investments in Ukraine at all costs.”

Sadly there’s a noisy handful of spammers here that actually agree with your sarcasm.

[delta7]

Weaponizing the USD was the downfall, Swift removal and stealing Russian funds put the entire world on notice. “ Do as we say, or else”.

Add to it the more than 1500 Sanctions against Russia blew away any trust in Biden’s USA….or putting any funds into the US.

It is doubtful President Trump can fix the damage that has been done, or restore any Trust, especially with China, Russia and India. They are more than 60 percent of the world’s population.

Thanks to a senile old man named Joe.

[BeauBo]

This article lost my interest with the first four words:

“Surging US Treasury yields”...

Treasury rates are not surging, by any stretch of the imagination. They are around 4.5%.

[Red6]

Mostly ignored.

It takes effort to explain and understand.

This proxy war with Russia has far reaching consequences that most people either do not understand or don’t want to understand.

Russia might not be as powerful as they once were in the Soviet and Warsaw Pact era, but they are still powerful enough to push back.

Our policies towards Russia have been to lie (NATO East expansion), cheat (Conventional Forces Europe Treaty and Montreux), break deals (Ballistic Missile Treaty), and expand into their sphere of influence (Iraq, Syria, Libya, Venezuela). Using cliche, Ukraine is simply the straw which broke the camels back.

There is a good argument to be made that we wanted this war and knew were going to make this boil over. By depleting Russia using Ukrainian men, and having the Euros pay 1/2, yet it is us that benefits. Russia can’t easily hold onto their overseas territories we have been in pursuit of for years with the weight of Ukraine hanging around their neck.