Brilliant. Bring CHina in explicitly. Americans buy a lot from China (vast trade deficit there), and China lends them the money to do so by buying US government bonds (the matching capital inflow). Declaring a trade war on China means a war too on China's lending, hence US bond yields are increasing nicely. Trump is going to feel it.
Brilliant. Bring CHina in explicitly. Americans buy a lot from China (vast trade deficit there), and China lends them the money to do so by buying US government bonds (the matching capital inflow). Declaring a trade war on China means a war too on China's lending, hence US bond yields are increasing nicely. Trump is going to feel it.