282
Say Captain Say Wot (lemmy.dbzer0.com)
submitted 3 weeks ago by cyrano@lemmy.dbzer0.com to c/politicalmemes@lemmy.world
56 comments fedilink hide all child comments
top 50 comments
sorted by: hot top controversial new old
[-] Bustedknuckles@lemmy.world 68 points 3 weeks ago

My money (while I have it) is that this is going to be the most lasting damage of Trump's presidency. Piss off the world and demonstrate we're unreliable economic partners. They don't want our debt anymore and dump their holdings/new purchases at auction. Servicing debt is already around 15% of All federal spending. DOGE targets are nothing in comparison.

Debt can get very expensive, and we've gotten used to paying very little for it. Most people aren't considering how bad this can get - I hope someone with power has been

[-] scarabic@lemmy.world 30 points 3 weeks ago

Trump struts around driveling about how everyone is ripping off the US left and right when in fact we have a stranglehold on most of the world, favored status almost everywhere we go, and structural advantages we forced on the world and have been milking for decades.

[-] ArgumentativeMonotheist@lemmy.world 3 points 3 weeks ago

God willing it'll all change soon.

[-] Tar_alcaran@sh.itjust.works 24 points 3 weeks ago

Doge's cuts can't event cover Doge's costs, let alone anything else, let alone all the following damages resulting from those cuts.

[-] ArgumentativeMonotheist@lemmy.world 1 points 3 weeks ago

You didn't really believe it was meant to cut anything, right? It was always meant to divert funds. Wasn't some crazy sum of money "lost" by DOGE like a month ago? 😅

[-] Tar_alcaran@sh.itjust.works 3 points 3 weeks ago

Oh yeah, it's straight up theft.

[-] spooky2092@lemmy.blahaj.zone 16 points 3 weeks ago

Absolutely. Republicans don't realize just how tenuous our status on the world stage, and thought it was still the 1950s. With everything they're doing, we're absolutely cooked for decades to come.

[-] grue@lemmy.world 16 points 3 weeks ago* (last edited 3 weeks ago)

With everything they're doing, we're absolutely cooked for decades to come.

That implies we'd ever recover and this isn't just the permanent end of American dominance.

Sentiments like yours are probably the same sorts of things some British folks were telling themselves after WWII as their empire slipped away.

[-] spooky2092@lemmy.blahaj.zone 8 points 3 weeks ago* (last edited 3 weeks ago)

That implies we'd ever recover and this isn't just the permanent end of American dominance.

Oh no, you completely took the wrong implication out of this.

"We're cooked for decades" meaning that we're absolutely fucked, but it might not be awful after a few decades. I have no allusions that the American hegemony will ever return.

[-] Ledericas@lemm.ee 5 points 3 weeks ago

i doubt thier low information voters will even look this deep, the gop? probably thought trump wouldnt go this far with the tariffs.

[-] cyrano@lemmy.dbzer0.com 13 points 3 weeks ago

The dumping isn't actually occurring in the traditional sense; central banks typically hold short-term maturities (around 2 years) between them for stability. Japan is the primary foreign holder of us debt. In reality, there's no need for them to sell off these assets. They can simply wait until they mature, as selling would negatively impact their own investments. On top, they could decide to not participate in new auctions or request higher yields at those auctions.

https://www.statista.com/statistics/246420/major-foreign-holders-of-us-treasury-debt/

[-] brucethemoose@lemmy.world 12 points 3 weeks ago* (last edited 3 weeks ago)

Many advisors have.

Many debt hawks in Congress have too.

But it’s not populist policy because the concept is too complex, so it’s never politically tenable. :/

[-] ftbd@feddit.org 3 points 3 weeks ago

How is this too complex? Isn't 'fiscal responsibility' a classical republican platform? I would have assumed most (especially older) voters are already familiar with the topic.

[-] brucethemoose@lemmy.world 2 points 3 weeks ago* (last edited 3 weeks ago)

Isn’t ‘fiscal responsibility’ a classical republican platform?

Hence classical Republicans got swallowed by MAGA, and no one is listening to Democrats ramble on.

If policy doesn't fit in an angry Tweet or a Tiktok-length video, it (on aggregate) doesn't stick. That's just how it is :(

[-] Quill7513@slrpnk.net 4 points 3 weeks ago

china for sure has been

[-] simplejack@lemmy.world 22 points 3 weeks ago

Oh god. What happened today?

[-] cyrano@lemmy.dbzer0.com 19 points 3 weeks ago
[-] Semi_Hemi_Demigod@lemmy.world 33 points 3 weeks ago

Please explain the significance of this to someone who’s never bought a bond but has dug through a couch to find spare change for groceries.

[-] YtA4QCam2A9j7EfTgHrH@infosec.pub 35 points 3 weeks ago

US Government Bonds are referred to as “risk free debt” because it is seen as the safest investment in existence. The US has never missed a payment in the whole history of the country.

Because of that all interest rates are related to the bond rate. People are getting nervous that US bonds are no longer trust worthy so they are demanding higher interest rates. This is terrible for the economy because those are the floor of interest rates. Meaning the cost to borrow is going up along with the cost of every thing else.

[-] Tommelot@lemmy.world 17 points 3 weeks ago

The lack of triple A status seems to indicate the debt is most definitely not risk-free.

[-] YtA4QCam2A9j7EfTgHrH@infosec.pub 11 points 3 weeks ago

I always would argue with my finance professors that calling it risk free was stupid given that most governments default on their debt eventually, and the US is probably no different

[-] tormeh@discuss.tchncs.de 12 points 3 weeks ago

They're only the floor because they're seen as risk free. "Why lend someone money for less than what the US government is offering you? The government is always gonna pay you back, after all". If that mentality changes then treasury bonds will no longer be the floor, because you'd rather lend the money to someone else than the US government.

Not that this isn't disastrous for the US. Increased taxes, cuts to medicare/medicaid/military, a government default, or a mix of all three are an inevitability. The US government can probably keep paying interest payment costs with more debt for a while, but not forever. These movements in the bond market takes us closer to the end of the USA's debt spree.

[-] Semi_Hemi_Demigod@lemmy.world 7 points 3 weeks ago* (last edited 3 weeks ago)

Donald Trump is dismantling the US and I can’t even enjoy it because he’s an asshole.

Boring, dumb, ugly timeline…

[-] cyrano@lemmy.dbzer0.com 14 points 3 weeks ago* (last edited 3 weeks ago)

In short, if the government plans to spend a lot, and people worry about prices going up, bond yields rise. This can make borrowing more expensive for everyone

Tap for longer

  1. Government Budget: When the government makes a plan for how to spend money (the budget), it can include a lot of spending on things like roads, schools, or healthcare Or Tax cuts or Big Beautiful Bill

  2. Rising Bond Yields: If people think this spending will cause prices to go up (inflation), they want more money back for lending to the government. So, they ask for higher interest on bonds, which is called a higher yield.

  3. Why It Matters:

    • More Expensive Loans: If bond yields go up, banks might charge more for loans (like for houses or cars), making it costlier to borrow money.
    • Investing Choices: People might choose to invest in bonds instead of stocks if they think bonds are safer or offer better returns.

[-] Tar_alcaran@sh.itjust.works 9 points 3 weeks ago

Also, risk is a factor.

If you lend money to your flaky cousin, you might want more interest to cover the risk of him never paying you back. If you lend money to your twin sister who has never missed a single thing in her life, maybe half a percent will do.

Well, the US just started moving into flaky cousin territory after two centuries of reliable sister.

[-] Cenzorrll@lemmy.world 9 points 3 weeks ago

Eli5 version:

Sam likes candy, and in the past, Sam has been very good at paying kids back for candy with a little bonus for doing so. Sam wants more candy, but Sam has lately been acting weird and unreliable, so no one wants to give them any because they aren't as confident that they will get paid back. Sam is now offering to give back even more in the future than his usual amount in the hopes that someone will give him candy. Sam is still acting pretty sketch, and getting more sketch every day.

[-] Endymion_Mallorn@kbin.melroy.org 9 points 3 weeks ago

Then Sam needs to start resorting to force and/or threats of force to ensure his access to candy. Don't bother stealing from the candy store, but beat up weaker kids and take their lunch money to buy candy, with the clear implication that any resistance in the future will lead to more extreme violence.

[-] tormeh@discuss.tchncs.de 2 points 3 weeks ago

That's just taxation. Which is something Sam really really hates. Easier to just borrow money forever. It's risk free, after all.

[-] Endymion_Mallorn@kbin.melroy.org 4 points 3 weeks ago

No, taxation is beating up people he lives with. I'm suggesting force against those he doesn't care about.

[-] Semi_Hemi_Demigod@lemmy.world 3 points 3 weeks ago

So I’m gonna go from a 27% interest rate on my emergency credit card that is always at its limit to, what, like a 35% interest rate?

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

Ballpark Yeah but it will not happen overnight.

[-] Psythik@lemm.ee 2 points 3 weeks ago

Is this why BTC is breaking new record highs as well?

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

Yes. Lack of trust in dollar due to the fiscal shenanigans

[-] peoplebeproblems@midwest.social 8 points 3 weeks ago

5.023%. goddamn. I know they were purposely trying to trigger a recession, but it actually went over 5%.

I wonder what the massive over-leveraged asset will be this time.

[-] figjam@midwest.social 2 points 3 weeks ago

Large Vehicles purchased with 7 year loans.

[-] Num10ck@lemmy.world 1 points 3 weeks ago

check out the supply vs demand number trends for houses, especially in the south.

[-] peoplebeproblems@midwest.social 2 points 3 weeks ago

As far as I can tell, everything reports a supply gap. It is decreasing in the south, notably.

That would imply demand is driving real estate prices up. That's not going to be an overleveraged asset, as far as I know Residential Mortgage Backed Securities are not nearly as exposed as they were in 2007. I have a suspicion that Commercial Mortgage Backed Securities are over leveraged, but I have no way of proving that.

It could be what you're implying is that the broad ownership of housing is inflated on purpose to drive prices up, and that something will make residences an unattractive investment. I don't know what that something could be - as the only thing that's a safer investment thatlln residential real estate is probably gold?

load more comments (7 replies)
[-] NigelFrobisher@aussie.zone 10 points 3 weeks ago

The UK lost our AAA credit rating and we’re not spiralling into decline and irrelevance at all!

[-] NeilBru@lemmy.world 4 points 3 weeks ago* (last edited 3 weeks ago)

I think that train (i.e., "Decline-of-the-UK-Express") started after WW1, if I'm recalling the statistics portion of my contemporary history class in university.

[-] theacharnian@lemmy.ca 3 points 3 weeks ago

Yes but the GBP is not the reserve currency of the world (any more).

[-] altphoto@lemmy.today 6 points 3 weeks ago

Bond, James Bond Market.

[-] Doom@ttrpg.network 1 points 3 weeks ago

Curious how this fits into his crypto scheme. Family friend is obsessed with it and I just know he's gonna regret it

load more comments
view more: next ›
this post was submitted on 19 May 2025
282 points (97.3% liked)

Political Memes

8456 readers
855 users here now

Welcome to politcal memes!

These are our rules:

Be civilJokes are okay, but don’t intentionally harass or disturb any member of our community. Sexism, racism and bigotry are not allowed. Good faith argumentation only. No posts discouraging people to vote or shaming people for voting.

No misinformationDon’t post any intentional misinformation. When asked by mods, provide sources for any claims you make.

Posts should be memesRandom pictures do not qualify as memes. Relevance to politics is required.

No bots, spam or self-promotionFollow instance rules, ask for your bot to be allowed on this community.

No AI generated content.Content posted must not be created by AI with the intent to mimic the style of existing images

founded 2 years ago
MODERATORS
Rooki@lemmy.world
automodbeta@lemmy.world
Thekingoflorda@lemmy.world
Tenthrow@lemmy.world
JonsJava@lemmy.world
WrenFeathers@lemmy.world