Part 4: NO COUNTRY FOR AN OLD DEBT MOOCH
A few weeks back one of the greatest anomalies of financial history quietly passed into the history books, but it shouldn’t have. We are referring to the fact that the yield on the 10-year US Treasury (UST) fell to an all time low of 0.52%, prompting Deutsche Bank’s chief credit strategist to marvel out loud:
……the current nadir in the 10-year yield went back 234 years…..The U.S. has been through depressions, deflations, wars, restrictive gold standard regimes, market crashes and many other major events and never before have we seen yields so low.
There you have the essence of Donald Trump’s malefic legacy. He brow-beat the Fed into abject submission on interest rates, even as he opened the spending and borrowing spigots like never before.