The erratic and delusional Malignant Fascist is busy driving inflation up with his war on Iran, and other self-sabotaging actions. The bond markets here and around the world have noticed. From the Associated Press:
"The world is getting more uptight about lending money to President Donald Trump’s government — causing interest rates to climb in ways that are worsening affordability pressures, hampering economic growth and creating a new risk for Republicans in November’s midterm elections.
The energy price spike triggered by the Iran war has seeped into the price of bonds that help fund the U.S. government. Interest rates on a 10-year U.S. Treasury note are topping 4.44%, up from 3.95% before the war started at the end of February. Average mortgage rates have climbed to their highest levels in nine months, while auto sales are slumping.
The challenge is global in scale, as interest rates have risen for multiple countries as the world has been adjusting to the prospect of higher inflation, mounting questions about the sustainability of government debt and a dramatic surge in investment in artificial intelligence." (our emphasis)
The world's economy is mostly downstream from the U.S. economy, so that impacts felt here will be felt by our trading partners and others in due course. The MF's mismanagement of domestic and foreign policy is being reflected in shrinking investments in U.S. government bonds, causing us to raise rates to attract investors, which in turn, drives our interest rates up as well as our debt. The MF's promises to bring down inflation were hollow, as was his promise not to engage in "stupid wars."
The MF is doing his best to rig the midterm elections for his cult through gerrymandering, discriminatory voting requirements, and even voter intimidation.but interest rates and inflation will be on the voters' minds come November, and it's clearly the MF's economy, not Joe Biden's.
BONUS: Another must-read from Lawrence Winnerman : "This Isn't A Recession. It's Worse."
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