this post was submitted on 11 Apr 2025
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Normally, investors rush into Treasurys at a whiff of economic chaos but now they are selling them as not even the lure of higher interest payments on the bonds is getting them to buy. The freak development has experts worried that big banks, funds and traders are losing faith in America as a good place to store their money.

“The fear is the U.S. is losing its standing as the safe haven,” said George Cipolloni, a fund manager at Penn Mutual Asset Management. “Our bond market is the biggest and most stable in the world, but when you add instability, bad things can happen.”

That could be bad news for consumers in need of a loan — and for President Donald Trump, who had hoped his tariff pause earlier this week would restore confidence in the markets.

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[–] Fedizen@lemmy.world 7 points 1 hour ago

God investors are dumb as shit

[–] octopus_ink@slrpnk.net 19 points 6 hours ago

raises fear that confidence in America is fading

Just now that fear is being raised?

[–] BradleyUffner@lemmy.world 14 points 6 hours ago (1 children)

Why would anyone still have faith in this country?

[–] reiterationstation@lemm.ee -1 points 2 hours ago (1 children)

That’s how shit the rest of them are.

[–] TronBronson@lemmy.world 2 points 3 minutes ago

European markets and bonds seem to be catching a lot of the fleeing capital so... big doubt.

We were up 3-0 in the finals and blew the lead. Enjoy generations of poverty if your family can survive the great depression.

[–] Aceticon@lemmy.dbzer0.com 23 points 7 hours ago* (last edited 7 hours ago) (1 children)

USD denominated bonds are by definition 100% exposed to the USD and it has been falling consistently (with but a single dead cat bounce) against other major currencies since Trump took over.

International investors are probably avoiding the Dollar (and hence Dollar-denominated assets) in favor of other currencies.

This would also explain why Gold keeps on beating records almost daily: it's sort of a "traditional" currency hence benefits from outflows from major currencies.

If this turns into the end of the Reserve Currency status for the USD, expect massive problems in the US with Inflation and servicing the massive US National Debt (if Treasury auctions have lower demand, Treasure yields have to go up in order to sell them, which is equivalent to say that interest rates on US Government loans go up).

[–] whoisearth@lemmy.ca 16 points 6 hours ago (2 children)

Which makes sense to all of us who see Trump as a Russian asset who's goal is not to cripple America but to destroy it. This is the end game and why Americans need to really ramp up their protests. This is the literal death of America we are witnessing as killed by Russia (and probably China too)

[–] finder585@lemmy.world 4 points 1 hour ago

killed by Russia

And don't forget tech-bros like Elon Musk.

[–] michel@lemmy.ml 8 points 4 hours ago

And remember he doesn’t have to be an official asset, merely being someone useful to them effectively does the same thing - with deniability for the Russians

[–] FinishingDutch@lemmy.world 38 points 12 hours ago

When US policy can change in hours, based on the whims of a madman, it’s not exactly difficult to see why people lose faith in that stability. Investors want long term stability, and right now things are complete chaos.

[–] rational_lib@lemmy.world 18 points 12 hours ago (1 children)

As a guy who thought about buying bonds recently and decided to go to gold instead, my thinking was that Trump and/or Elon could definitely make some attempt to steal/divert treasury bonds, hold bonds hostage for some change he wants, or some other fuckery. The US can't go bankrupt - so long as you can trust the leaders to do the most basic rational things. But you can't trust them to do that right now.

[–] Aceticon@lemmy.dbzer0.com 9 points 7 hours ago* (last edited 7 hours ago) (1 children)

If the US loses it's Reserve Currency status because too many international investors are existing it, more printing will directly translate to Inflation.

So whilst technically the US can't go bankrupt, it most certainly can end up with Hyperinflation and all its problems if the printers start going full steam (metaphorically speaking, since nowadays most currency is digital) to stop the bankrupting of the US following Trump/Musk fuckery and foreigners (as well as larger local investors) refuse to buy those new Dollars and actually accelerate their the exiting from positions in USD (and that's not just going to be cash positions but also USD-Denominated assets such as Stocks, Bonds and Treasuries) which seems to have been started happening already judging by news such as this.

[–] wise_pancake@lemmy.ca 5 points 5 hours ago

I’ve stopped assuming these guys will account for facts, nor that they keep the “no” finance guys around when making decisions.

I think 100% of decisions are made by Trump in the Oval Office based on the object permanence of the last person or tweet he’s seen.

[–] Goodmorningsunshine@lemmy.world 49 points 16 hours ago (1 children)

I can heartily say as an American I have no faith whatsoever in this country and wish all the best in the world to the Canada-Europe-Japan conglomerate to be the only possible beacon of hope on the planet.

[–] beernacle@lemmy.dbzer0.com 16 points 15 hours ago

They (trump, republican toadies billionaires ,etc) have no faith whatsoever in this country either. that's why they're grabbing everything they can, selling the country for parts and fucking off to Greenland.

[–] SoftestSapphic@lemmy.world 67 points 18 hours ago (4 children)

Nothing will meaningfully improve until the rich fear for their lives

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[–] mesamunefire@lemmy.world 165 points 22 hours ago (5 children)

This is arguably bigger news than the stock market.

[–] Treczoks@lemmy.world 80 points 22 hours ago (10 children)

It definitely is. If bonds don't sell, or at least no longer sell cheap, then the US might get bigger problems with their budget.

[–] sp3ctr4l@lemmy.dbzer0.com 49 points 20 hours ago (2 children)

If US Bonds are no longer the de facto safe haven asset...

The USD is no longer the world's de facto reserve currency.

That means that even if all the tariffs were rescinded, Trump croaked and somehow JD Vance took a 'be at least somewhat more competent and less stupid' pill, and never reinstated them...

Well it would mean the dollar would crash against other currencies, we wouldn't be able to import anywhere near as much, and US international debt payments as a percentage of the yearly budget would climb fast.

... And then that could spiral into both massive austerity at home, and/or 'lol we are defaulting on our international debt' either by formal declaration, or... basically hyperinflation.

[–] CileTheSane@lemmy.ca 5 points 1 hour ago (1 children)

That means that even if all the tariffs were rescinded, Trump croaked and somehow JD Vance took a 'be at least somewhat more competent and less stupid' pill, and never reinstated them...

It's too late for that. The US has shown that any appearance of stability can be upended at the whim of whatever singular person is president at the time, and there are no systems in place to prevent that. The idea of "checks and balances" has been shown to be a lie.

Trump signed a trade agreement with Canada and Mexico last time he was president and immediately violated them at the start of this term. He's been constantly back and forth on tariffs with no warning. The word of the US has become completely worthless.

It doesn't matter if all Republicans suddenly realize "this is bad", remove Trump, and put someone stable in his place. The world had been shown that regardless of how stable the current president is, in 4 years the citizens could vote for a complete idiot (and I remind you Trump did win the popular vote. The citizens voted for this) and the market is in turmoil again.

Other countries aren't unstable idiots of course and aren't going to tear up existing agreements (because they value stability) but they sure as fuck won't be renewing any contracts (at least not without far less favorable terms for the US and escape hatches incase another idiot is put in charge) and will be making contracts with other nations instead.

Trump has killed the US and a financial superpower, the US just doesn't know it yet. It won't be felt until existing contracts expire and new ones are signed.

[–] sp3ctr4l@lemmy.dbzer0.com 1 points 13 minutes ago

No disagreements, no notes.

We (USians) are completely cooked, totally fucked.

We'd have to erect a new government, and then actually demonstrate stability for a decade or two... to begin to be able to undo Trump's damage, to be treated as anything other than basically a rogue nation that also has the world's... either the first or second largest/most powerful military.

I can only hope some more civilized places may begin to more seriously consider Americans seeking asylum... though I of course completely understand why they wouldn't.

[–] TheBat@lemmy.world 6 points 13 hours ago (2 children)

then u sell ur aircraft carriers and f35s lul

[–] sp3ctr4l@lemmy.dbzer0.com 5 points 8 hours ago* (last edited 8 hours ago)

Oh sure, here, buy our aircraft carriers and aircraft that even we can barely understand our own logistics and and maintenance supply lines and procedures for, that will all nearly mmediately break if they stop getting software updates.

Like, I hear you lol, but its kinda like saying 'sell your literally custom made hyper car that will depreiciate by 80% in value and the parts manufacturer will go out of business when you buy the car.'

I am saying you'd have to be an idiot at this point to buy one, we wouldn't be able to sell them at this point.

Now I am all for downsizing the military in general, have been for basically all my life since middle school... but uh yeah, that would look more like decommissioning and downsizing.

But uh also also, the military industrial complex are basically the only domestic manufacturing jobs we really have, aside of our shitty overpriced domestically assembled but internationally owned and sourced consumer cars... and the Trumpublican party is, you know, in charge, what with the fascist coup and all that.

[–] P00ptart@lemmy.world 9 points 10 hours ago (1 children)

That's not what happens in this scenario... Those aircraft carriers and F35s get activated.

[–] sepi@piefed.social 6 points 3 hours ago* (last edited 3 hours ago)

For another victory in Afghanistan?

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[–] Ledericas@lemm.ee 2 points 10 hours ago

maybe you shouldnt have backed trump in his eleciton.

[–] RememberTheApollo_@lemmy.world 52 points 20 hours ago

There’s a reason for that. Maybe if all those well-off bankers hadn’t thrown in with trump in hopes of deregulation their portfolios would still be slowly climbing up with the DJIA under a democrat instead of flopping around like a fish out of water under trump.

[–] sp3ctr4l@lemmy.dbzer0.com 53 points 20 hours ago (2 children)

If ya'll want another layer of irony to all this:

George Soros initially rose to general public fame/infamy with large bets against British Pound in 1992, that effectively defeated the Bank of England's attempts to stabilize the currency, resulting in its devaluation, and something like a billion $ profit for Soros.

Fast forward to now, and Trump supporters have spent the last 5 or 10 years acting like Soros is secretly the most underhanded and influential 'world controller' bogey man that exists, and they blame everything they don't like on being funded by him... despite pretty much all of his charities and funds and causes he donates to being publically available knowledge... and despite Soros being a fairly small fish in the modern ocean of much, much more wealthy and infuential corporations and individuals.

... So, now, Trump very well may have done basically the same thing as what Soros did 3 decades ago: force the devaluation of the USD and cause economic mayhem, but... at a much, much larger scale than Soros did.

The Trump supporters have utterly and entirely lost their own plot, that they themselves mostly fabricated.

[–] Tower@lemm.ee 26 points 19 hours ago (2 children)

Soros gets blamed not because he is a democratic billionaire, but because he's a [[[certain kind]]] of democratic billionaire.

[–] ultranaut@lemmy.world 16 points 18 hours ago (2 children)

After the fall of the USSR he was a major funding source for anti-corruption and pro-democracy efforts that disempowered Russian interests in several countries. White supremacists sharing Russian propaganda back then is where the conspiracy theory started, at least in the US.

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[–] gAlienLifeform@lemmy.world 87 points 22 hours ago (3 children)

Oh come on, "Freak" sell off makes it sound like there's some mystery as to what caused this when it's blindingly obvious what the problem is here. The markets, and far more importantly all decent and rational people throughout the world, won't and shouldn't have any confidence in anything as long as Donald Trump is president. The only thing that starts to fix this mess is his resignation or impeachment (and that is only a start, investigations criminal charges and sentences amendments to laws etc. all need to happen too).

[–] Ledericas@lemm.ee 5 points 10 hours ago

since impeachment happened twice with trump, with no convictions, only for show and sound bites for MSM, its unlikely he will get charged or sentenced at all.

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[–] ProfHillbilly@lemmy.world 97 points 22 hours ago (3 children)

I guess I picked a bad time to stop huffing glue.

[–] BagOfHeavyStones@lemm.ee 63 points 22 hours ago (2 children)

Can you fly this economy and land it?

[–] dhork@lemmy.world 49 points 22 hours ago (2 children)

Have you ever been to an El Salvadorian prison, Joey?

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[–] iAmTheTot@sh.itjust.works 64 points 22 hours ago (2 children)

It's not really a "freak" event when the causes are blatantly clear and self-inflicted.

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[–] ScrambledEggs@lazysoci.al 17 points 18 hours ago

Well I mean... Gestures at everything

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