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Cake day: January 6th, 2025

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  • It’s not just Iran: Trump threatened to defend the Bond market with the US military. This is in the context of the US bonds rising. They are expensive enough now that the cost of servicing US debt is comparable to the amount spent on Defense! And in the last round, not all the bonds were sold.

    So one way of interpreting Trump’s statement is as a threat: anyone selling US bonds and making our borrowing more expensive will be attacked.

    If you were in a position to buy US bonds, would you buy them now knowing you might never be able to sell them?

    The middle eastern economies are under pressure because of the war, and they have large amounts of Bonds… How will they react? If they don’t sell, their economies faces a recession. If they do, they might get bombed by what, until recently, they thought was the guarantor of their security.

    Trump is destroying the world order and the US standing on the world, he is creating and accelerating the conditions for a massive economic recession, and all for a war for Israel. A war they cannot win.