Luke Gromen: Bonds must lose real value to support U.S. reshoring - tradersunion.com
Luke Gromen: Bonds must lose real value to support U.S. reshoring - tradersunion.com
Source: tradersunion.com
―
DW NOTE
Gromen is correct but understating it. The U.S. government owes $35 trillion at a 3.65% policy rate, spending $1.4 trillion more than it collects this year alone. Treasury can either pay real yields and watch the budget implode, or suppress yields below inflation and tax bondholders silently. With reshoring requiring trillions in industrial capex, there is no scenario where Treasuries preserve purchasing power — only a question of whether the theft is announced or enacted through the clearing price.