Posted on 04/09/2025 11:58:22 PM PDT by dennisw
Donald Trump finally decided to take the proverbial “win” on trade and the stock market rallied nearly 3,000 points.
You can thank the bond market, with an assist from Treasury Secretary Scott Bessent, for making it happen.
We have been hyper-focused on how the stock market dropped ever since Trump declared trade war on the entire world, how he kept upping the ante, demanding ever higher degrees of compensation from our trade partners, even those who appeared to be acting in good faith and wanting to negotiate peace.
He was also goaded by two of the most hawkish and protectionist advisers to have ever set foot in the White House: Howard Lutnick, the commerce secretary, and Peter Navarro, who holds the title as senior counsel to the president.
Pushed aside, until recently that is, was Scott Bessent, a veteran Wall Street financier who sought a middle ground, doing deals with countries but not engaging in outright war.
The hawks seemed to be firmly in control even as markets around the world continued to crater, the US stock indices losing trillions of dollars in value.
Trump continued to ignore olive branches from the EU, which stated publicly it wanted zero tariffs with the US on many goods; Trump even kept toying with Israel, one of our closest allies, after Prime Minister Benjamin Netanyahu told him he’d eliminate all tariffs on US goods, wipe out the trade deficit with the US.
That long game came to an end Tuesday night in the form of a bond market rout for the ages.
(Excerpt) Read more at nypost.com ...
Trumps tariffs wars got ratcheted down due to the bond markets >>> Call it a mid-course correction>>>
“That long game came to an end Tuesday night in the form of a bond market rout for the ages.”
GAS BAG RINO … LOL. as if he is in any way relevant!
He figured like on a game show “I’m going to put all my winnings on Communist China for the jackpot.” (applause)
“Okay, Mr. Trump. It’s China for all the marbles. Good luck.”
I know less than nothing about this.
Someone said before the bond rout happened that China owns so much of the US financial system investments that if they withdrew suddenly it would cause a catastrophe to the US.
Is that true?
Is their influence or participation the cause of the bond situation yesterday?
Any information will be appreciated.
Signed,
A financial dunce.
These journalists don’t like trump, and they lie and lie in hopes of getting other people to not like him also.
Or maybe Trump got the targeted he was looking, screwing Chy-na.
Yes, China could choose to lose the income from the bonds, but it might hurt them more if businesses leave.
Yes, China could choose to lose the income from the bonds, but it might hurt them more if businesses leave.
Was Trump getting close to a repeat of 2008?
Is that true? Is their influence or participation the cause of the bond situation yesterday?
Any information will be appreciated."
*************************************************************
China would gladly sell all its US Treasuries if it could. Their problem is that they have nowhere else to put the money, so they are stuck with holding on to most of their US bonds for now.
Not true. If you owe the bank a million and can’t pay, you have a problem. If you owe a billion and can’t pay the bank has a problem.
If China dumps treasuries they take a huge loss. Remember the trade deficit with China? They had to use up those excess dollars and they did. Instead of buying tangible assets they bought US Bonds which are guaranteed to be paid back in US dollars which are backed by the promise to pay, well, more promises.
It was this inflow of money to the Treasury that financed the blowout budgets. thanks to Trump that gravy train is dead. We will have to start living within our means.
If China dumps treasuries they take a huge loss.
<><>Remember the trade deficit with China?
<><>They had to use up those excess dollars and they did.
<><>Instead of buying tangible assets they bought US Bonds
<><>US bonds are “guaranteed to pay back” in US dollars
<><>ergo, China’s inflow to the Treasury financed the Biden blowout budgets.
<><>Thanks to Trump that gravy train is dead.
<><>We will now have to start living within our means.
Nice deconstruction.
We will now have to start living within our means.
..................................
ABOUT TIME!!!!
ABOUT TIME We start living within our means.
Hope its not too late.
The “US financial system” is a catastrophe already, finacializing productivity and redistributing income from producers to oligarchs.
Too many people here look on the gains from financialization as “the economy”. we even allow paper profits to be included in GDP, misleading us into the belief that we are doing well.
The system has to die, the only question is, can the damage be limited to the oligarchs and our “global economy” partners, or are we all going down together?
First they said the interest rates on U.S. bonds were rising because China was selling off their bonds. Then it was hedge funds selling off bonds because they needed to cover their losses in the stock market. Now this guy says it was the Japanese, not the Chinese, who were selling off their bonds.
I say it was none of these.
What has happened here is simply the result of the five-year anniversary of the key inflection point in COVID — when “15 days to flatten the curve” turned out to be a farce, and the world collectively failed its IQ test.
The Federal Reserve slashed its base rate to around .05% in late March of 2020. The U.S. government flooded the market with a massive new “stimulus package” that was financed with bonds paying minuscule interest rates. In early April of 2020, 5-Year T-Bills were issued with a yield of 0.4%.
Those bonds started maturing this week … and they are being refinanced at much higher rates now.
The U.S. is facing a financial disaster because the 4% interest on the new bonds is more than 10x what the old ones were. The stock market collapse was part of a desperate move to get investors to run to U.S. bonds this week as a safe haven. IT DIDN’T WORK.
“It was this inflow of money to the Treasury that financed the blowout budgets”
And don’t forget the uniparty printing countless billions over decades to finance the corruption!
I HAVE been living within my means my entire life, due to teaching by my WWII Navy veteran father (God bless his soul). Haven't been very popular or well-liked because of my ideas, but, ask me if I care.
Rut roh...
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