Flight from the Dollar Could Wreck America’s Finances

The Economist: “In 1990s Japan the worst days of a market crisis brought about a ‘triple yasu’ loss: a fall in stock markets, a rise in bond yields and a declining currency. It is now America that must stomach this noxious combination. Although President Donald Trump’s tariff pause provided a brief respite, the triple yasu has made an unwelcome return…”

“In Japan the triple yasu was associated with national decline. Yet a flight from all American assets represents a far greater loss. That is because the dollar and Treasury bonds are the world’s havens, and the global financial system has been built on the assumption that they are safe.”