3 ms·
In the modern global economy, debt interest is national defense. People are much less likely to go to war with someone who owes them money; it guarantees they
by shadowgovt 2y ago
In the modern global economy, debt interest is national defense.
People are much less likely to go to war with someone who owes them money; it guarantees they won't get paid.
- tines 2y agoWhat an interesting thought.
- webninja 2y agoI like your optimism but because bonds can be resold on the open bond market, the bond holding adversary will still receive their money. Holding your opponent’s debt or currency opens the door for currency wars. Flooding the market with bonds of your opponent will simultaneously raise money for your military and hurt your opponent’s ability to raise funds for their military defense —- making it an issue of national security. Because bond buyers prefer stability, seeing bond interest rate changes spooks individual bond holders to sell even more. This is known as “shaking the tree” as a strategy to collapse prices even more.
- deleted 2y ago[deleted]