Trump's financial repression strategy to support AI is unsustainable and bearish for the dollar and bonds

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Trump's administration, through Treasury Secretary Scott Bessent, is directly intervening in the bond market to suppress long-term interest rates, bypassing the Fed. This action is intended to support the AI capex boom, but it is seen as a bearish signal for the US dollar and bonds due to increased debt issuance and concerns about creditworthiness. This strategy of financial repression to prevent an AI bust is unsustainable, especially with the rise of cheap Chinese AI models causing commoditiza