America’s Shocking ‘Moron Premium’: Are You Paying Extra for Stupidity?

Illustration of Trump being crushed by a giant treasury bond

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WELCOME TO THE BOND BATTLE: TRUMP’S ECONOMIC WARFARE!

Hold on to your wallets, America! The only force thatโ€™s got Donald Trump sweating bullets is the merciless U.S. Treasury market! With Republicans playing dead, Democrats eating their own tails, and CEOs ducking for cover, itโ€™s a high-stakes showdown as foreign allies tiptoe around a minefield known as Trump.

TRUMP’S FEAR: RISING DEBT AND CRASHING DOLLARS!

Twice already, the U.S. Treasury bonds have nosedived alongside a sinking dollar, causing investors to demand a hefty price for the risk of owning U.S. debt. Itโ€™s a nightmare scenario, and Trump isnโ€™t immune! After a bond market meltdown in April, he hit the brakes on his global tariff war. But guess what? Heโ€™s back at it, lashing out with a 50% tariff on the EU and targeting Apple with 25% duties! Can you say economic chaos?

DEBT ON THE RISE: A DANGEROUS GAME!

Itโ€™s not just Trumpโ€™s anticsโ€”the public debt is soaring to a staggering 123% of GDP, the highest itโ€™s been since World War II! Successive presidents, from Bush to Trump and Biden, have been relentless in piling on the deficit without a thought for the countryโ€™s financial future.

But now, the bond markets are finally waking up!

COVID-19: THE GAME CHANGER FOR BONDS AND DEBT!

Enter the COVID-19 pandemic that flipped the script on low inflation and easy money. Trump’s latest "big, beautiful bill" is set to dump over $3 trillion onto the U.S. public debt over the next decade! Thatโ€™s rightโ€”debt servicing costs are about to snatch a larger slice of the pie while his spending cuts look like a cruel joke.

THE TRUSS EFFECT: BONDS IN THE CROSSHAIRS!

With psychological tides shifting, Trumpโ€™s second term feels like a runaway train! He canโ€™t afford to ignore the Liz Truss disaster in the UK, where failing bond markets sent the former PM packing. What a panic! The last thing Trump needs now is the โ€œTruss effectโ€ breathing down his neck.

DEFAULT DANGER: A CHOICE OR A CALAMITY?

Hereโ€™s the kicker: America could default by sheer choice! If Congress doesnโ€™t raise the debt ceiling later this year, we could see a financial suicide even crazier than Washingtonโ€™s usual antics. And hey, if Trump decides to tax foreign bondholders? Thatโ€™s a one-way ticket to a market crash!

ECONOMIC ORTHODOXY IN THE CROSSHAIRS!

So, what does this mean for the future? Trumpโ€™s unpredictable brawl with economic sanity could send the markets into an emotional rollercoaster! Every time he hits the brakesโ€”pausing tariffs, sweet-talking the Federal Reserveโ€”stocks bounce back. It’s like a wild financial game show, but the stakes are skyrocketing!

A CRISIS BREWING: SHOULD WE PANIC?

While itโ€™s downright theatrical to say the U.S. reserve currency is on the verge of dethronement, the potential for a global financial crisis is no laughing matter! As the red ink spreads from D.C., Trump is raising a ruckus in the wild west of cryptocurrency and banking.

Buckle up, America! It’s going to be a bumpy ride!

photo credit: www.ft.com

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Source: USD @ Sat, 31 May.