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To back up the commenter's statement: most well informed economists kept pushing that China would sell US Treasury Bonds pennies on the dollar to "ruin" the US
by NoOneNew 5y ago
To back up the commenter's statement: most well informed economists kept pushing that China would sell US Treasury Bonds pennies on the dollar to "ruin" the US economy.
Anyone with a half a brain and some real world business knowledge would realize: Do you really want to be the guy who mentions, let alone put into motion, that losing hundreds of billions of dollars worth of receipts to make a negotiation situation worse, is a good idea? At that, selling bonds at a discount helps open up for allied nations to suck up those bonds to make more future money themselves. Thus powering the US negotiation side even more.
And did they play the bond game? Obviously not. They're not stupid. "I'm going to burn my money just to piss you guys off!"
Seriously, many public figure economists are idiots. Not all. The good one's public discourse gets reserved to small press geopolitical publications. Even then, they always acknowledge how fickle an economy can be and how easy it is to be blindsided.
So yea, high inflation in the next 5-10 years is a real possibility, especially as the stimulus bond payments start to mount.
- lottin 5y ago> most well informed economists kept pushing that China would sell US Treasury Bonds pennies on the dollar Who's saying that?
- NoOneNew 5y agoSo you never actually read the articles, "China's economic/negotiation weapon against Trump". CNN, MSNBC and many other news agencies were pushing that narrative.
- throw0101a 5y agoThis story has been going on for years, and it's always been a Nothing Burger: > Matthew Yglesias notes[1] an uptick in Very Serious People warning that China might lose confidence in America and start dumping our bonds. He focuses on China’s motives, which is useful. But the crucial point, which he touches on only briefly at the end, is that whatever China’s motives, the Chinese wouldn’t hurt us if they dumped our bonds — in fact, it would probably be good for America. * https://krugman.blogs.nytimes.com/2013/10/18/the-china-debt-syndrome/ https://krugman.blogs.nytimes.com/2013/10/18/the-china-debt-... * https://archive.is/4Q95O https://archive.is/4Q95O
- lottin 5y agoNo, I don't watch CNN or MSNBC, because I'm European, but the OP was talking about "most well-informed economists", not media outlets, and I was curious who these economists are, being an economist myself.