The Fat Pipe 08/07/26: Deal or No Deal? US Treasuries “Not Fit for Purpose,” and Grab Bag
As the Iran war simmers along, increasingly concerning events are unfolding in the financial world. Can Bessent prevent Japan's illness from spreading to the US? What happens if/when foreign appetite for US Treasury paper dips below a critical threshold? Ah - that's when things really speed up.
Source: Peak Prosperity
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DW NOTE
Trump announces a deal that doesn't exist; oil falls anyway. Iran still controls the Strait of Hormuz four months in, and the market trades the press release instead of the blockade. When price discovery depends on believing Treasury Secretaries over shipping manifests, you no longer have a market—you have a word game with trillion-dollar stakes.