this post was submitted on 09 Apr 2025
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[–] Skiluros@sh.itjust.works 86 points 2 weeks ago (21 children)

The moves offer a new challenge to the Trump administration, which had previously cited lowering Treasury yields as a key policy aim, and could mark a loss of investor confidence in the world’s largest sovereign debt market.

“The sell-off may be signalling a regime shift whereby US Treasuries are no longer the global fixed-income safe haven,” said Ben Wiltshire, a rates strategist at Citi.

This is potentially a seismic shift in global finance/economics.

If US treasuries are no longer considered the "investment of last resort" (which they shouldn't be, since even sane Americans lack the commitment and risk tolerance to fight corruption and degeneracy in their own country), this may result in the dollar losing its status as the global reserve currency.

If that happens, the Americans will be fucked.

[–] cyrano@lemmy.dbzer0.com 18 points 2 weeks ago (6 children)

Not just the American will be fuck. It will be a financial meltdown.

[–] Skiluros@sh.itjust.works 4 points 2 weeks ago (1 children)

On one hand I agree with you. This won't only impact the US. Perhaps we'll get hit harder than the Americans (at least some parts of the world).

On the other hand I would argue the rest of the world is much more connected on a visceral level. The Americans have their feet and legs, when the world uses meters and centigrade. American prices are always provided on a list basis (and local oligarchs and their shills constantly lie that modern software solutions can't apply local tax adjustment algorithms on a dynamic basis), the rest of the world has true prices (only in English would one have to clarify what you mean by true prices).

I am not saying that only Americans will get fucked, but the rest of the world has a measure of dynamism that Americans don't (not to mention a much higher tolerance to challenges).

Perhaps there are some long terms benefits to Trump's behaviour. We can find alternative to American-style corruption and degeneracy. While there are many sane Americans, they also need to take a more sober attitude to their current situation and be willing to take risks and be less arrogant about "home of the brave" and similar polemics.

[–] cyrano@lemmy.dbzer0.com 3 points 2 weeks ago

Yes maybe like Lemmy, a more federated type trade rather than centralize financial/ currency wise. That will be great.

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