berg80
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- Oct 28, 2017
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- #121
If you don't sell, you've lost nothing.
Trump Has Added Risk to the Surest Bet in Global Finance
There are not many certainties in the world of money, but this traditionally has been one of them: When life turns scary, people take refuge in American government bonds.Investors buy U.S. Treasuries on the assumption that, come what may ā financial panic, war, natural disaster ā the federal government will endure and stand by its debts, making its bonds the closest thing to a covenant with the heavens.
Yet turmoil in bond markets last week revealed the extent to which President Trump has shaken faith in that basic proposition, challenging the previously unimpeachable solidity of U.S. government debt. His trade war ā now focused intently on China ā has raised the prospect of a worldwide economic downturn while damaging American credibility as a responsible steward of peace and prosperity.
āThe whole world has decided that the U.S. government has no idea what itās doing,ā said Mark Blyth, a political economist at Brown University and co-author of the forthcoming book āInflation: A Guide for Users and Losers.ā

Trump Has Added Risk to the Surest Bet in Global Finance
Shocked by Trumpās trade war, foreign investors are selling U.S. government bonds, long the worldās safe haven.