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straight talk: freezing Russia's US treasuring holdings damages the value of said US treasuring holdings for everyone else with a brain + sovereign self interes

straight talk: freezing Russia's US treasuring holdings damages the value of said US treasuring holdings for everyone else with a brain + sovereign self interest

orionblastar 3y ago
Not to mention the spending that the President and Congress do. It adds to the debt and ruins the bonds.
mindslight 3y ago
Only for those who consider their self interest to require acting out imperial desires. It's not a terribly surprising precedent that if you attack another country, your foreign assets might be frozen and eventually seized to pay for all the damage you cause.
dh2022 3y ago
The article gives two reasons why bonds are getting harder to sell: the fed is buying less because their are getting off QE; and the US government deficit is ballooning thus more bonds are hitting the market. Sorry to burst your bubble but China’s gas station had no impact on Treasuries.
- KBme 3y ago
  You don't think that refusing to pay your debt, no matter moral qualms about the holder, impacts the value of your debt? Investors could start wondering when you'll accuse them of being evil for any reason and refuse to pay them.
  - mindslight 3y ago
    Good thing there is that whole court system and associated bureaucracy rather than autocratic rule supporting "accuse them of being evil for any reason". If any "investors" are actually wondering whether they're at significant risk of the US government "refusing to pay them" (read: seizing their assets), their first stop should be an attorney who can give them a rough idea if they're engaged in illegal activity. This is a good idea if one has any assets within the reach of US jurisdiction, regardless of whether those assets are government bonds or not. And sure the justice system, the legal system, and USian pan-jurisdiction all have their problems. But with this situation of ethnic cleansing in service of some hollow Make Russia Great Again nonsense, both the legal outcome and the morality are quite clear cut.
    - KBme 3y ago
      Pretty sure that's not how it works. If a party you lend to can unilaterally it becomes much harder to justify investing. That's simply how it goes. Lawyers don't come into it since the decision is unilateral.
      - mindslight 3y ago
        Except the whole point of courts is that these decisions aren't unilateral. From what I've seen, Russia's assets have been frozen (not repudiated), awaiting a much longer legal process (involving many lawyers) where they will (hopefully) be turned over to Ukraine as war reparations (once again, transferred not repudiated).
bdjsiqoocwk 3y ago
Damages the value for all those who plan on attacking the USA. To me it didn't affect their value at all. Same for any Western government.

straight talk: freezing Russia's US treasuring holdings damages the value of said US treasuring holdings for everyone else with a brain + sovereign self interest

orionblastar 3y ago

Not to mention the spending that the President and Congress do. It adds to the debt and ruins the bonds.

mindslight 3y ago

Only for those who consider their self interest to require acting out imperial desires. It's not a terribly surprising precedent that if you attack another country, your foreign assets might be frozen and eventually seized to pay for all the damage you cause.

dh2022 3y ago

The article gives two reasons why bonds are getting harder to sell: the fed is buying less because their are getting off QE; and the US government deficit is ballooning thus more bonds are hitting the market. Sorry to burst your bubble but China’s gas station had no impact on Treasuries.

KBme 3y ago
You don't think that refusing to pay your debt, no matter moral qualms about the holder, impacts the value of your debt? Investors could start wondering when you'll accuse them of being evil for any reason and refuse to pay them.
- mindslight 3y ago
  Good thing there is that whole court system and associated bureaucracy rather than autocratic rule supporting "accuse them of being evil for any reason". If any "investors" are actually wondering whether they're at significant risk of the US government "refusing to pay them" (read: seizing their assets), their first stop should be an attorney who can give them a rough idea if they're engaged in illegal activity. This is a good idea if one has any assets within the reach of US jurisdiction, regardless of whether those assets are government bonds or not. And sure the justice system, the legal system, and USian pan-jurisdiction all have their problems. But with this situation of ethnic cleansing in service of some hollow Make Russia Great Again nonsense, both the legal outcome and the morality are quite clear cut.
  - KBme 3y ago
    Pretty sure that's not how it works. If a party you lend to can unilaterally it becomes much harder to justify investing. That's simply how it goes. Lawyers don't come into it since the decision is unilateral.
    - mindslight 3y ago
      Except the whole point of courts is that these decisions aren't unilateral. From what I've seen, Russia's assets have been frozen (not repudiated), awaiting a much longer legal process (involving many lawyers) where they will (hopefully) be turned over to Ukraine as war reparations (once again, transferred not repudiated).

bdjsiqoocwk 3y ago

Damages the value for all those who plan on attacking the USA. To me it didn't affect their value at all. Same for any Western government.