America's decaying Treasury market threatens global financial stability
By
The Economist
Summary
The article discusses the critical importance of U.S. Treasury bonds as the world's primary safe asset, and warns that high government debt, fragmented markets, and aggressive trade policies are threatening the stability and reliability of this cornerstone of global finance. It traces the issue back to the 1971 Nixon shock and argues that the Treasury market's decay poses systemic risks to the global financial system.
Source
bskyAmerica's decaying Treasury market threatens global financial stabilityecon.stKey quotes
· 3 pulledNo asset is more important than America's government debt.
It provides a haven for investors at dangerous moments.
Trillions of dollars of contracts and securities worldwide are priced with reference to Treasury bonds.
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