Financial Stability in Turbulent Times

This chapter examines the role of U.S. Treasury bonds as safe financial assets amidst market uncertainties and the implications of recent bond market fluctuations. It discusses the effects of political decisions and announcements on market dynamics, including a significant sell-off and market volatility driven by impending tax changes. The conversation further explores the intersection of financial influence and political power, highlighting contrasts between strategies in the U.S. and China while questioning the consequences of diminishing global trade.