2 ms·
I 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
by webninja 2y ago
I 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]