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🇺🇸 Washington is throwing $40 billion at a $40 trillion bond market. Financial journalist David Lin says the arithmetic doomed the intervention before it started, and traders worked that out immediately: "The Treasury won't have enough firepower to enact meaningful long term change to the direction of the yields."...

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🇺🇸 The U.S. Treasury is trying to stop bond yields from rising. But according to David Lin, Washington may be picking a fight with a market it simply doesn't have enough firepower to control. Treasury Secretary Scott Bessent doubled planned bond buybacks from $2 billion to $4 billion per operation, signalling that Washington is prepared to intervene more aggressively. Yields fell for one day. Then they went straight back up. The problem is scale. The Treasury market is measured in tens of trillions of dollars, making $4 billion of intervention little more than a signal. And if yields keep rising, the consequences spread far beyond Wall Street. Mortgages, corporate borrowing and government debt servicing all become more expensive. Lin's bigger concern is what governments do when financial pressure starts limiting their options. Higher debt costs could push governments toward more aggressive tariffs, trade wars and foreign-policy decisions as they try to protect their economies. Meanwhile, the dollar remains the world's dominant safe haven, even as central banks accumulate more gold and countries increasingly look for ways around a dollar-based system. And then there's the Iran war. Lin argues that the conflict has exposed another vulnerability: energy infrastructure is remarkably easy to disrupt with cheap drones. Refineries, pipelines and shipping can all become targets, creating a much bigger problem for an already fragile global economy. So the biggest risk may not be a sudden financial collapse. It may be governments gradually losing room to maneuver, while markets become increasingly unwilling to listen. The Treasury can announce bigger interventions. The bond market can simply decide they aren't big enough. David Lin

Mario Nawfal

295,040 次观看 • 9 天前