Quebec | McFarmer - 4/9/2025 05:27
How’s this for a black swan event:
China tries to dump our debt, bond yields go into orbit, trump decides we won’t pay. World burns.
Republicans get a back bone.
Yeah, the last one is the least likely.
That may not end up well for you as a country (for anybody really). If you start defaulting on you debts (in addition to not being the world's police anymore), why would anybody buy USD$? Not having to purchase USD$ to pay for oil means oil producing countries aren't plowing those USD$ back into the US economy/US treasuries. You are going to have to balance the trade AND a significantly reduced federal budget.
I'm not advocating for anything one way or an other. But people should go into the possible scenarios with eyes open.
Edited by PTurgeon 4/9/2025 06:08
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10 year bonds keep surging
