An Economic Crisis Is Inevitable

['Anne Kim', 'More Anne Kim', '.Wp-Block-Co-Authors-Plus-Coauthors.Is-Layout-Flow', 'Class', 'Wp-Block-Co-Authors-Plus', 'Display Inline', '.Wp-Block-Co-Authors-Plus-Avatar', 'Where Img', 'Height Auto Max-Width', 'Vertical-Align Bottom .Wp-Block-Co-Authors-Plus-Coauthors.Is-Layout-Flow .Wp-Block-Co-Authors-Plus-Avatar'] Washington Monthly 2025-07-23 00:00:00

Washington Monthly An Economic Crisis Is Inevitable Play Episode Pause Episode Mute/Unmute Episode Rewind 10 Seconds 1x Fast Forward 30 seconds 00:00 / Share Share Link EmbedAmerica could be on the cusp of an economic downturn, thanks to the self—defeating, destructive policies of president Donald Trump. And if they were to stop buying U.S. securities, the U.S. economy would crash because interest rates would skyrocket. Anne Kim:Can you explain why slowing sales or an outright stoppage of Treasury securities purchases will cause interest rates to spike? And when people aren’t buying, we have to continue raising interest rates in order to entice more people in with higher yields. Anne Kim:And this is interest going to countries like China, Japan, the UK—whoever holds our debt.