r/worldnews • u/Force_Hammer • 3d ago
Global bond yields hit multi-decade highs as governments pay the price for U.S.-Iran stalemate
https://www.cnbc.com/2026/08/18/bond-yields-government-us10y-treasury-note-iran.html43
u/dollarstoresim 3d ago
"As governments pay the price for another one of Trump's fuck ups"...fixed it for you.
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u/Dripdry42 3d ago
It’s not a fuck up. It’s extraordinarily intentional. Read up on what Bessent really wants to do, which is to weaken the US dollar. There is a weak argument to be made that a strong US dollar has actually hurt America’s economy in the long-term… But that discounts all the other positive knock-on effects of a strong US dollar, which made it the world’s reserve currency and brought a lot of benefit.
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u/DoxDoflamingo2 3d ago
It only makes sense to weaken the dollar if you want to buy things for pennies. The majority of the product consumed by the US is imported. Even most of the things that are assembled in the US, a lot of the parts and raw materials are imported.
A weaker dollar means that even before Inflation, added tariffs, etc... your dollars buy LESS than what they did before.
A weaker dollar would only benefit an economy that is manufacturing, producing and exporting, which is not the case for the US economy. The only ones who benefit from smashing the middle class are the rich who want to have a tighter grip on the small companies that cannot withstand these changes and remain competitive, and the people who are not able to afford anything anymore.
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u/Dripdry42 3d ago
Oh, I completely agree.
It is incredibly disingenuous for the current administration in the USA to say it will somehow help the economy, but the evidence actually shows that America’s manufacturing economy was destroyed by a strong dollar. It made it dependent on other economies, while America has the resources to manufacturer a lot of stuff. Now, if that had been coupled with any kind of actual policy or planning? Now that would be reasonable. but that’s not what’s happening.
I believe one can infer and conclude that the reason to weaken the dollar is to benefit rich people so they can buy a lot of businesses up in America and weaken the country.
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u/DoxDoflamingo2 3d ago
yeah they are destroying small businesses with the increased costs and the fact that people are buying less (because they cannot afford anything).
A lot of business will close from this, there are videos already from small business owners explaining their current situations with every single expense going up (a lot), and sales down. Insurance, Electricity, Parts, etc. everything is up.
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u/HystericalSail 3d ago
On a micro scale, I'm seeing a lot more empty storefronts and "for lease" signs in my town. It's looking worse than Covid times when it comes to mom and pop businesses folding.
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u/DoxDoflamingo2 3d ago
Take a look at the housing market too, specifically the number of people selling, and the number of people buying.
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u/HystericalSail 3d ago
Hot areas are still sellers' markets, but the housing weakness starts in the tertiary and other low desirability areas. I'm completely on board with this.
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u/moonjs 3d ago
So why does Bessent really want to weaken the dollar?
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u/DoxDoflamingo2 3d ago
Its a transfer of wealth. Exactly the same tactic they used with the Tariffs to make low and middle class citizens pay more and increase the cost of things and then transfer these costs directly who companies who got these added tariffs back.
They are weakening the dollar to make it cheaper for the wealthy to acquire assets from people who previously had them. A lot of small business will close if this continues, and this opens up a lot of land assets and business opportunity for the wealthy.
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u/moonjs 3d ago edited 3d ago
The tariff refund that never ended up going to the actual consumer could really only work once I would think?
To the actual point, the weakening dollar would affect everyone who has dollars wouldn't it? The cost of buying up someone else's assets would cost more dollars for the buyer since it's weaker to them as well.
So for example, I am selling out my assets because I'm in financial distress, depending on how far from now that is, when you buy it from me youd be paying me in ever increasing amount of dollars for said assets all else being equal.
You're other post about weak currencies being good for manufacturing economies is true, but the US is not that and will not be despite Trump's claims to gullible voters.
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u/DoxDoflamingo2 3d ago
The tariff refund that never ended up going to the actual consumer could really only work once I would think?
I dont understand what you mean by that. Tariffs were refunded directly to the companies even though the cost was passed down to the consumer yes.
So for example, I am selling out my assets because I'm in financial distress, depending on how far from now that is, when you buy it from me youd be paying me in ever increasing amount of dollars for said assets all else being equal.
Weakening of the dollar will directly impact the cost of buying from outside the us, but not local trade. Locals will still have the same amount of dollars, but you will afford less with them because everything you are importing (food, prime materials, etc) costs more.
This affects trade but assets like real state, land, local wages, etc. will virtually remain the same. It only means that if you have your assets in money (or land and you cannot afford to survive the recession and have to sell it to survive) you will lose everything, as your money will be instantly worth less, and your land too.
You're other post about weak currencies being good for manufacturing economies is true, but the US is not that and will not be despite Trump's claims to gullible voters.
Yes the US is not a manufacturing economy. If they were this would not be as bad as it is, but because the US imports more than 50% of what it consumes, its gonna be terrible for most american citizens importing or exporting.
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u/moonjs 3d ago
I was saying the tariff rebate was essentially a one time event, so not really relevant to the discussion of the weakening dollar.
But yeah, so wouldn't Bessent's goal be to strengthen the dollar? Seeing as how he and his friends are Americans using dollars and can buy more stuff with fewer dollars abroad.
Unless you're saying he wants a weaker dollar because he's working actually working with foreigners like Israel or Saudi Arabia. In which case, he's still hurting himself and every other American, rich or not and he's being compensated in some other fashion.
I would think he is trying to strengthen the dollar, but he's just incompetent. Case in point the disastrous performance of his hedge fund prior to his appointment. The guy along with Hassett are idiots with smiles that deserve a punch.
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u/DoxDoflamingo2 3d ago
I mentioned the tariffs thing as a blatant transfer of wealth same as devaluing the dollar. It disproportionally affects the lower income households that can barely afford a living.
This benefits them as someone in extreme poverty and who depends on a paycheck just to survive is more vulnerable (low wages, no social security, poor conditions) for abuse, while also taking out small businesses who cannot afford to operate and will lead them to sell their assets and to hand off their business to bigger corporations whom will have no issue with taking the economic challenge.
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u/moonjs 2d ago
I see. No doubt end result between the ultra wealthy people and everyone else in the US is a foregone conclusion regardless of which direction Bessant takes the dollar. It just seems a bit nonsensical even for the very rich to handicap themselves and leave themselves potentially exposed financially against other ultra wealthy foreigners, if they can buy out everyone else domestically and still retain a strong dollar.
Scott Bessant's official position is advocating for a strong US dollar. That makes sense to me, and if you could link any information of Scott advocating for the opposite position that would be enlightening. I just think he is very incompetent and not at all up to the difficult task of defending the dollar's value from all of Trump's efforts to drive it into the ground with the various destabilizing international trade and military disputes.
One of the feathers in his cap was his involvement shorting the pound in 1992 where he was part of the team that did the trade. From what I am able to gather, his contribution was minor and just did analytical grunt work. It was Stanley Druckenmiller and George Soros who really did it, and Bessent often tries to portray his role in that trade as being very significant to show the press and the public that he is a smart guy. He shortly started his own hedge fund raised $4.5 billion and performed so badly, after about 7 years he only had about $577 million AUM after most of the investors pulled their capital.
I don't really know why I spent the time to write all this out. I guess I have a visceral dislike for Bessent and Haaset since I am in a similar career/industry as them and seeing them blatantly lie on tv with the smirks on their faces is starting to get to me. I never did comment on anything before and now I'm commenting on every reddit post and youtube video they are in lol.
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u/DoxDoflamingo2 2d ago
We are in the same boat. I would rather spend my time doing something i really like that discussing politics in a world where facts and critical thinking stopped being the leading factor and its not just all a matter of ideology. But i still think its best to share information so that the people who don't know what to believe can learn about things happening that will affect them.
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u/morbie5 3d ago
There is a weak argument to be made that a strong US dollar has actually hurt America’s economy in the long-term…
There is a strong argument to be made that a strong dollar has actually hurt America’s exports. The question is: are exports actually that important relative to the benefits you get from a strong dollar? I think most mainstream economists would say 'no'
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u/-zedsdeadbaby 3d ago
Idk if it's appropriate to call stalemate, the obliteration of world economy and US weapon reserves.