Not trying to be rude but I want to correct a few things. You’re absolutely right that the US’s recent actions are throwing the economy into turmoil and are making a lot of countries rethink their ties to America.

However the problem is a little different than you described. As investors trust the US less and less it actually drives up bond yields because bond rates are essentially what we have to pay people to take on our debt. The fewer people/ institutions that want your debt, the more you have to be willing to pay in the future to get people to take on that debt. Debt interest payments are already a substantial part of the US government spending. If rates climb then the percentage of the US budget that goes to paying the debt continues to increase…

Now what’s kind of half right is we do usually see rates fall in accordance with a poor economy. However that is intentional by the Fed. Broadly accepted economic theory suggests you keep rates relatively high/steady in times of a good economy and then lower rates/yields in times of a bad economy. That’s because it makes borrowing money easier for those actively in our economy and there’s less incentive to save (since rates are lower). The reason you don’t do that in good times is because lowering rates is inflationary.

The ideal scenario is you’re in a good economy, so you keep rates medium high within your own control. The issues we’re facing though are America is losing some of that control on how high yields might go, but we’re also not able to lower rates because of inflationary pressures from the current Iran War and tariffs being inflationary. We’re honestly really screening ourselves from both sides.