The dollar's external defenses have been breached, signaling a significant vulnerability in the American currency. The text suggests that the economic and financial situation is deteriorating at an accelerating pace.
The article states that when markets realize the desperation of current governments and those that will succeed them, long-term interest rates will rise again. This increase will represent an acknowledgment by investors of the fiscal fragility of the governments in question.
Scott Bessent, mentioned in the text, is said to have carried out an incursion into the bond market. However, the article anticipates that this intervention will prove futile, suggesting that the measures taken by the Treasury Secretary will not be sufficient to halt the upward trend in interest rates nor to restore confidence in the markets.
