How the US sanctioned itself in Ukraine

By Free Republic | Created at 2025-01-11 23:42:36 | Updated at 2025-01-12 02:09:58 2 hours ago

How the US sanctioned itself in Ukraine
Asia Times ^ | 1/10/25 | David Goldman

Posted on 01/11/2025 3:30:02 PM PST by EnderWiggin1970

Surging US Treasury yields are the main driver of global markets, depressing stock prices, pushing up the US dollar exchange rate, and threatening homebuilding and other rate-dependent economic activity in the United States. As rates rise, moreover, the US Treasury deficit – already above 6% of GDP – will increase. Interest payments on the federal debt rose to $1 trillion from $400 billion in 2021, adding to the blowout federal borrowing requirement of $1.8 trillion.

Foreign central banks meanwhile have cut their holdings of US government debt, adding to upward pressure on yields – by a painful 0.8 percentage points, according to my calculation. The seizure of Russian foreign exchange reserves in 2022 led central banks to shift out of dollar assets. The reserve seizure probably did more damage to the US economy than to Russia’s.

(Excerpt) Read more at asiatimes.com ...

TOPICS: Business/Economy; Foreign Affairs; Government; Ukraine
KEYWORDS: bidencrimefamily; noriskproxywar; sanctions; treasury; ukraine

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The government in Washington is heavily dependent on foreign central banks to finance its deficits. But as it earns a reputation for stiffing its creditors, the creditors not unreasonably are getting rid of their US debt. (It's very strange how so many US citizens, abused and persecuted by this same government, then keep funding it with their own T-bill purchases.)

To: EnderWiggin1970

Uh, short term yields are significantly lower.

As always, YMMV.

2 posted on 01/11/2025 3:37:05 PM PST by Paladin2

To: EnderWiggin1970

The FED and Yellin’ are very busy trying to screw Trump and MAGA Americans.

3 posted on 01/11/2025 3:39:41 PM PST by Paladin2

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