The Great Debasement Debate Is Rippling Across World Markets

Beneath the surface of the short-term ups and downs of financial markets, a longer-term repricing of multiple assets may be underway as investors seek to protect themselves from the threats posed by runaway budget deficits.

While new rounds of tariff threats between the US and China sent traders from riskier assets and into bonds in recent days, money managers have been increasingly discussing a phenomenon known as the “debasement trade.”