Kyla Scanlon

needs it most to remain stable with all of the volatility that's happening from the administration.

yeah yeah and you know you imagine you have the situation where fewer people are seeking out us assets whether that be because they don't have um the ability to do so because of the lack of the in carry trade or the want and then um other people like europe are like okay we're not gonna buy this and that when there's fewer people buying something you have you command a higher price like you have to

The U.S.

government would have to raise yields to entice people to come and buy U.S.

treasuries.

And higher yields mean higher debt service costs for the U.S.

government.

Higher debt service costs mean higher deficits.

Larger deficits mean that you have to issue even more treasuries.

And then more issuance into a market where nobody really wants to buy anything means even higher yields.

And so it ends up being like a really...

tough feedback loop to exit out of.

And that's kind of the main concern with what's happening to Japan, as well as the conversation around Europe, perhaps not buying up U.S.

treasuries.

Yeah, did you see that clip?

For sure.

Yeah.

I mean, I think like in terms of soft power, there's already a TikTok trend where people are like, you've met me at a very Chinese time in my life.

And so I think China has like, because they've been so stable and they have their own problems, like, let's be clear.

I got accused of being a Chinese agent on one of my recent videos because I was just talking about like the elements of soft power that they have and the strength that they have in terms of AI.