politics

So for those unaware. If followed through this would be the biggest economic crisis worldwide, since the great depression. No hyperbole.

US treasury bonds are the way the US government borrows money. They are most of the debt. They are also the "safe asset". Because it was assumed that the US, being the sole superpower and the biggest economy, would always pay back its debts. Because of this whenever organizations needed to park money super safely, they would use US government bonds.

Around 30 trillion worldwide, that is 1/3 of the world's GDP, is held in US bonds.

You know who the biggest borrowers of US debt are? Pension funds. And you know the biggest one of all of them? Social Security. US social security holds around 3 trillion of US debt. Debt that would suddenly be worth nothing anymore.

In total, around 27 trillion of treasury bonds are held in the US by pension funds, local governments, etc. These would be gone.

Other countries would suddenly lose 3 trillion, biggest of which are Japan, China and the UK. Belgium Luxembourg and Switzerland hold a huge share compared to their economy, and could collapse completely.

But hey, at least the national debt is gone, right?

Well.. No one would borrow the US money anymore. Who would trust them anymore? Likely, this would be the end of the USD as the worlds reserve currency. With that, I doubt military spending could be upheld. The US would collapse as a superpower.

This breaks the economy.

If the US defaults on its loans, its creditability drops, which will probably destabilize the global value of the US$. China and Russia will benefit most. Every nation with financial ties to the US will suffer for it.

When trying to understand why certain decisions are made, follow the money. Donald Trump is a foreign asset.

2nd week in a row he has tried to crash the market over the weekend for Monday morning.

I’m guessing all his hedge fund asshole/twat stain friends already purchased their puts and agent orange is providing the catalyst.

Assuming he doesn't talk that back really fucking quick that'll literally implode the bond market.

... Trump seems to be basing this on some analysis from the DOGE boys. This appears to have been one of the DOGE boys’ main goals at Treasury, getting access to details about what kinds of payments Treasury makes, the answer being close to everything the U.S. government does outside of the Pentagon and some of the Pentagon stuff too. The Treasury also services the U.S. debt, which is what we’re talking about here. I’m less clear on what access to which part of the Treasury Department these guys could have gotten to get information about how the Treasury Department sells and services Treasury notes. But all that detail aside, imagine thinking that by downloading a ton of data and having a few days to analyze it you could make the determination that a significant amount of the U.S. national debt wasn’t real and didn’t have to be paid. It’s hardly the craziest thing we’ve seen over recent days. But it’s still worth noting how nuts that is.

I'm lost for words.

The 14th Amendment clause about debt validity exists precisely because of this flavor of posturing oligarchs – now we’ve got bargain-bin John Galt cosplayers auditing T-bills between meme stocks. Trump’s “irregularities” schtick is just sovereign citizen logic scaled to national debt levels, complete with DOGE bros LARPing as forensic accountants.

Declaring chunks of debt illegitimate isn’t fiscal policy – it’s a wealth incinerator disguised as a spreadsheet error. Markets would implode if taken seriously, but the real damage is normalizing this circus as governance. Treasury raids morphing into TikTok challenges where the prize is collapsing the dollar’s reserve status.

Constitutional bedrock becomes optional when your economic advisors mainline 4chan threads. The only “irregularity” here is the cognitive dissonance required to bankrupt a superpower for clout.

He's trying to crash the dollar for cryptobros. Or Putin.

It seems like Elon is controlling Trump even in this. Isn't devaluing to swing markets an Elon move? He probably wants to sell a bunch of stock and simply trying to crash the EV market wasn't enough if a wave for him to become the first trillionaire. Crashing the dollar it is I guess?

This could trigger a Minsky moment. And a world wide financial meltdown. Then he'll just say haha just kidding. Once that genie is out of the bottle though, there's no going back.

So he is starting the groundwork for sewing doubt and getting ready for a push to crypto as our currency? Sounds like something the Xitler Youth could convince him of.

Why would he even say this? Usually there's a pretty clear motivation to his lies but this one just seems suicidal

Sort of funny that as soon as the greatest generation died their children, who were too stupid to understand what they had built, destroyed their empire

I picked a fine week to give up sniffing glue.

i'm going to guess that this is somehow related to making money on cryptocurrency

Weapons-grade stupid. Crash global economy any % speedrun.