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Saifedean Ammous highlights that despite concerns about oil prices, a more significant issue for Donald Trump may be the rising yield on U.S. treasuries. Since the start of the war on Iran, the 10-year yield has risen by approximately 0.42% to 4.39%.
This uptick in yields directly translates into tens of billions of dollars in additional debt servicing payments. Ammous draws a connection between global events and financial pressures, emphasizing the domestic fiscal impact of increasing government borrowing costs.
Ammous’s perspective on debt servicing pressures aligns with his ongoing evaluation of how financial volatility can impact domestic and global markets. His observations regarding persistent inflationary environments, as seen in Argentina’s enduring challenges with a 2.9 percent monthly inflation rate and 33 percent annual rate, further underscore the significance of monetary policy and fiscal discipline. Additionally, his scrutiny of alternative financial systems, including the recent spotlight on Bitcoin services promoted by Swan and partners, reinforces the broader conversation around economic resilience amid escalating state borrowing costs.