Still working our way downward

UPDATE 08/04/2023:

However, the market impact has been minimal. There was no significant movement in the price and yield of US Treasuries, the benchmark borrowing mechanism, nor in the value of the US dollar against other currencies – even after the US Treasury announced the following day that it would increase borrowing by $7bn in the next quarter and add another $6bn in its debt auctions in the coming month.

The reality is that there is ample demand for US debt, which plays a vital role not only in the US financial system but across the globe.

Consider the two largest economies below the US: China and Japan. One is a rival, the other an ally. Yet, both are the world’s largest buyers of US Treasuries, which serve not only as the source of US dollar holdings for global reserves but are also the predominant instrument in which international trade is financed.

  alJazeera

We may not have manufactured goods to sell, but boy do we have debt. What a coup.