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I agree it makes no sense. But having China as a bondholder does not give them any power over us. Especially when said bonds are delineated in US currency - som
by jjeaff 6y ago
I agree it makes no sense. But having China as a bondholder does not give them any power over us. Especially when said bonds are delineated in US currency - something the US can print at will.
- klyrs 6y agoThought experiment: US pays China $1T in US fiat. Simultaneously, US cuts $1T checks to every single resident of the US. Chaos ensues. But seriously, wtf would happen in this situation?
- vkou 6y agoHyperinflation and the collapse of the US economy, and at long last, the introduction of socialism to the United States, (unfortunately, in the worst possible manner). A week later, we'll all be trading cans of gasoline and ammunition for euros and bottle caps. Perfect example of cutting off your nose to spite your face.
- ficklepickle 6y agoWe've all seen Red Dawn. Patrick Swayze will save us from the big bad socialists.
- chrischen 6y agoBasically what is happening right now, though not as extreme.
- mywittyname 6y agoAnswer: The CARES act was the US government printing $2 trillion bucks and handing checks out to every resident of the US. Nothing happened (the chaos predated the money). Also, it's important to realize that t-bonds and USDs are basically the same thing. A T-bond is, for all intents and purposes, high-denomination dollar bill that can be exchanged for low-denomination bills on an open market.
- klyrs 6y agoYou missed the part where I said each resident would get a trillion bucks. Patently absurd, I know, but it's more fun to imagine than today's actual news.
- insert_coin 6y agoIs not the money that is the problem, they hold bonds because they specifically do not want US dollars and are waiting for the time when the US (or the world) has something other than US dollars to offer them. They don't want dollars doesn't matter who prints them.