Posted on 04/09/2025 6:48:36 AM PDT by SeekAndFind
Confidence in the US economy is plummeting as investors dumped government debt amid growing concerns over the impact of Donald Trump's tariffs.
On Wednesday, the yield - or interest rate - on US bonds spiked sharply to touch the highest level since February at 4.5%.
The government sell bonds - essentially an IOU - to raise money from financial markets and these are viewed as a safe investment, meaning the US normally does not need to offer high rates to attract buyers.
Trump has gone ahead with sweeping tariffs on goods being imported into the US, while Washington's trade war with Beijing has escalated.
After the US implemented a 104% tariff on products from China at midnight on Wednesday, Beijing hit back with 84% levy on American products. Stock markets have been falling sharply over the past few days in reaction to Trump pressing ahead with tariffs.
However, the sale of bonds poses a major problem for the world's biggest economy.
While the rate is the same level as a couple of months ago, the interest rates for US borrowing over 10 years has spiked sharply in the past couple of days up from 3.9%.
"Rising bond yields mean higher costs for companies to borrow, and of course governments too," said Laith Khalaf, head of investment analysis at AJ Bell.
(Excerpt) Read more at bbc.com ...
POTUS flushing the hedged coveys out.
The jackasses in the “media” are trying to make Americans think people are jumping out of windows on Wall Street. The “media” clowns have shifted into MAXIMUM STRENGTH LYING.
WSJ is definitely a part of the lying jackals media.
A lot of the selling is China. It’s a tactic in their tariff negotiations with Trump.
China is dumping bonds which was to be expected. Keep paying those tariffs Xi and we will not need the bonds.
Ben Shapiro has been a little too critical of Trump as of late. Yet he did have a gem of an idea last night on his show.
Trump should announce lifting/lessening of tariffs with countries that are making good offers to us. Israel, Argentina, Italy, some of the EU states etc I believe. This would go a long way towards calming these markets.
and keep tightening the crews on China..,maybe the most evil government on Earth.
I want dead beat China to pay on the old Chinese railroad bonds that they haven’t paid a penny on since they became communist. They owe American bond holders (their heirs) over $1 trillion including interest.
“The jackasses in the “media” are trying to make Americans think people are jumping out of windows on Wall Street. The “media” clowns have shifted into MAXIMUM STRENGTH LYING.”
Agreed. I still think the media has a lot of power in swaying public opinion. The pathetic American school system has done the job the left wanted done.
This is part of the plan.
The big problem with trade deficits is that the other countries use all their extra USD to by our debt. That makes it very cheap for the US gov’t to borrow, creating the massive debt problem we are in.
The easy money era of huge deficits and ever growing debt needs to end. The tariffs might be tough medicine, but they are needed.
Why do I not believe anything I see in the news? What has caused me to believe the opposite of what I hear?
Some $5 trillion in likely new debt over the next two years had no impact on the Treasury sell-off decision making. /s
The US economy is where we buy stuff made overseas and borrow or print the money to pay for it. That’s an economy for losers and grifters and his the way to ruin if we have not already arrived.
Yawn, the latest in media economic propaganda, seen the same article in several different papers, literally the same thing repeated like a megaphone to the common folk.
Coordinated narrative based on a single day’s fluctuation, the lies have become so obvious along with ignoring things like China’s selling debt to try and create this illusion.
No one is writing how China is literally at war economically and this is an attack by them.
That’s not Shapiro’s idea.
Bessent, in a November 2024 interview with Tucker Carlson, hinted at this dynamic, saying, “Countries that play ball with us on trade will see the benefits—jobs, investment, stability,”
Playing ball means fair trade, elimination of NTBs.
This has likely been the plan all along. Trump is using CCP’s hatred of the US to isolate them and weaken them.
Time for China to go back into their Mao box.
Nope, now please continue the cringe ignoring how China is selling off debt to create the transitory effect.
5-Year Treasury Bills that were issued in April 2020 -- during the COVID financial chaos -- carried a rate of 0.4% due to the emergency rate cuts instituted by the Federal Reserve.
As they mature today, they have to be refinanced at a rate of about 4%. That means the interest on that debt is now 10x higher today than it was yesterday.
Xi is not paying tariffs. Importers pay tariffs.
I’m not familiar with those old Chinese bonds.
Yes if those bonds have never been paid on, they should pay up.
Apparently when China went communist, they repudiated former financial obligations.
My guess is this, China will cover the duty for a long time.
They may ( more than likely) get help covering the duty from companies like Foxconn($53.2 billion net profit/2023) and Walmart($19.44 billion net profit/2023) too. They will share the pain for a while. Foxconn and Walmart are essentially CCP assets.
I this were to happen it would be the biggest claw back of stolen wealth in world history.
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