Why is the US complaining
This week is when the world’s Jews gather together to retell the story of the Exodus from Egypt in a highly stylized meal known as a seder. Jesus’ Last Supper was a seder, so it’s a ritual that reverberates throughout the world’s great monotheistic religions.
Each seder starts with the youngest person present asking four questions to get the adults to explain what is different about the night, and why they’re commemorating events more than 3,000 years ago.
I’ve long made a habit to pose four financial questions each Passover, to ask about what doesn’t make sense in current markets.
Why is the US complaining of being victimized for 70 years when in reality, it’s ruled the world and enjoyed great prosperity?
Globalization has had a grievous effect on US manufacturing jobs that has stoked inequality. This isn’t populist myth-making; it’s been a five-alarm fire for economists, politicians, and Main Street for well over a decade.
This is why a large chunk of the US population can be convinced that the rest of the world has ripped them off. Deindustrialization and rising inequality wouldn’t have happened without globalization.
The US economy grew throughout, yet nobody found a way to redeploy the people impoverished by globalization. That wasn’t inevitable, and can’t be fixed by blocking off imports.
The government might have intervened to stop inequality reaching this point, most logically with the traditional left-wing remedy of redistributive taxation. That’s a complete no-no in contemporary US political culture
Why is the dollar falling, even though Treasury yields are rising?
The week’s price action tends to confirm that bond yields are in a rising trend that started five years ago. Such things matter in the bond market, which tends to follow long cycles
The only explanation is a loss of confidence in the US as a destination for funds.
John Authers Bloomberg 14 april 2025 at 07:16 CEST
America must next year roll over debt worth nearly $9trn (30% of GDP).
RE: Problemet doldes länge genom att räntan var nära noll. När lånen som togs då skall rullas runt med stigande räntor blir det inte så roligt.
Tillbaka till Rolfs länktips 14 april 2025, USA:s växande nettoskuld till omvärlden
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