The $27 trillion U.S. Treasury market, the largest government bond market in the world by multiples, is the starting point for the cost of capital. It directly affects the everyday activities of American consumers and businesses. It helps determine how much the government can spend and underpins global American power.
Policy proposals from Donald Trump and his circle would threaten the huge advantages the United States enjoys from this market. These include unfunded tax cuts, an even broader trade war, a weakening of the dollar and a reduction in the independence of the Federal Reserve. Taken alone, they would probably raise borrowing costs for businesses, households and the government. That would mean everyone would have less money to spend.
We know campaign promises do not always become reality. Both parties have carried out policies over time that have had costs as large as their benefits. Still, the potential fallout from this particular set of ideas would be a significant disruption to the Treasury market and everything that depends on it, including interest rates. Republicans must find other ways to achieve their economic goals.
By Rebecca Patterson
Ms. Patterson is an economist who has held senior roles at JPMorgan Chase and Bridgewater Associates.
New York Times 7-31-24
QUINNSCOMMENTARY 
I think it is great the brother Quinn yesterday presented the looney tune proposals by our friends on the left–two of which appeared on CNN last night–now he gives us another Democrat who teaches at the bastion of free speech and diversity; Georgetown Univ. (the Jesuits are rolling over in their graves) for some criticism of the other side.
Unfunded tax cuts should not be an issue–look at the great results we have had since the Trump tax have been in effect–money rolling into the Treasury at unprecedented rates but folks like brother Quinn say no spending cuts are in his horizon–not even those 1930’s farm/agricultural supports? everything is sacrosanct?
Unemployment at record lows according to our lefty friends–I read recently that 83%+ of the jobs created since the demented one and his partner in crime took over were in government/education/health care–what happened to the private sector? You know the greedy price gougers!!
A broader trade war assumes we are in one now? I guess we should accept the hacking of the Chinese–the balloon they flew over the U.S. before the demented one thought about shooting it down, or the restrictions they place on U.S. goods being sold in Peking.
A weakening of the dollar is speculation on her part–does anyone know what gold hitting an all-time high is telling us?
Federal Reserve concern I share as the last thing any of us should want is the politicization of the Fed.
Her last concern about we as a nation and people would have less to spend sounds like what happens when governments create inflation (too much $ chasing too few goods)–where was she when Lawrence Summers and others warned about that when the demented one and his partner told us what would happen if they flooded the country with $. We were told it was just “temporary”.
Two days–2 economic proposals to consider–good work brother Quinn!!!
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Yada,yada,yada. Another Dem tossing firecrackers. I suppose she thinks the Harris/Walz proposals will continue us on the garden path.
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