Byzantine
1w ago
tariffs decrease the flow of dollars to other parts of the world
less dollars to other parts of the world increase the difficulty of servicing dollar denominated debt
those countries then print their their local currency to buy US treasury bonds in order to get the yield from those treasury bonds to service their existing debt
The US treasury yield then falls because there's an increasing demand for US treasury bonds as it is the only way of getting dollars to service existing debt
this then leads to the global debt restructure
less dollars to other parts of the world increase the difficulty of servicing dollar denominated debt
those countries then print their their local currency to buy US treasury bonds in order to get the yield from those treasury bonds to service their existing debt
The US treasury yield then falls because there's an increasing demand for US treasury bonds as it is the only way of getting dollars to service existing debt
this then leads to the global debt restructure
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