A few weeks ago, I wrote a post about how the US’ exorbitant privilege - its ability to issue lots of debt at low interest rates without the Dollar going into free fall - has been deteriorating for many years. This deterioration coincides with the rapid rise in US debt, which has outpaced the rest of the G10. The way I quantified this loss in the exorbitant privilege was to calculate the differential of the 10-year Treasury yield minus the trade-weighted average 10-year yield on gov’t bonds in Germany (DE), Japan (JP), the UK (GB), Canada (CA), Switzerland (CH), Sweden (SE) and Australia (AU), using 10-year currency ... (full story)