The Rest Is Politics: US
The Rest Is Politics: US

Trump’s Wars Have Just Broken the Global Economy

September 3, 2026

AI Summary

5 min read

The G20 finance ministers gathered in Asheville, North Carolina, this week for what was supposed to be a show of unity. Instead, the meeting descended into chaos over a global bond market sell-off, rising debt, and tariffs—plus the awkward presence of Russia and China in the room. As Anthony Scaramucci put it, “It was a G1 plus 19. It sort of felt like that. It wasn’t really a G20.” At the same moment, Xi Jinping was holding meetings in Kyrgyzstan and Cairo with India, Iran, and Russia, projecting stability and reliability. The contrast was deliberate. China is sending a signal to the White House ahead of Xi’s meeting with Trump in three weeks: Look, I have allies now.

The Bond Market Doesn’t Care About the Photo Op

The real story of the week, Scaramucci argued, is the bond market. U.S. national debt has crossed $40 trillion and is heading toward $41 trillion. “It is a freight train that isn’t stopping,” he said. The bond market is the one force that cannot be primaried or spun. When demand for U.S. Treasuries doesn’t quite meet supply, interest rates get bid up. And since the dollar is still the world’s reserve currency, higher U.S. rates ripple everywhere. “Rates are the financial gravity of financial assets,” Scaramucci explained. “Higher rates means lower prices and it makes it harder to do business.”

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What you'll learn

  • 1 (00:00) **G20 Disunity & Global Economic Warning Lights** - The G20 Finance Ministers meeting in Asheville descends into chaos over bond sell-offs, debt, tariffs, and the awkward presence of Russia and China.
  • 2 (06:50) **The Bond Market's Real Power** - The bond market, not politics, holds the real power as demand for US treasuries fails to meet supply, forcing interest rates higher.
  • 3 (08:42) **Bessent's Performance & The Limits of Jawboning** - Treasury Secretary Bessent is the "best you're gonna get" from Trump, but he must act as a sycophant, making borderline ridiculous claims to manage market sentiment.
  • 4 (11:31) **Can AI-Driven Growth Solve the Debt Crisis?** - The debate between flashing red lights in the bond market and the AI boom: can America truly "grow its way out" of the debt problem?
  • 5 (14:26) **Historical Precedent & The Need for Fiscal Guardrails** - The US has been in this debt position before (after WWII) and grew out of it, but today's leadership lacks the discipline to implement necessary spending controls.
  • 6 (17:47) **Xi Jinping's Charm Offensive vs. American Chaos** - Xi Jinping is using the chaos of Trump's economic wars to project stability and soft power ahead of his meeting with Trump.
  • 7 (20:25) **The Decline of American Soft Power** - Trump's policies, including the shutdown of USAID, have ceded the soft power advantage America had over China.

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Guests on this episode

Show Notes

How worried should we be about the global bond sell-off? How did the US’ G20 talks compare with China’s summit in Kyrgyzstan? And, is the Texas Senate race already over?


Join Katty Kay and Anthony Scaramucci as they answer all these questions and more.



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