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Because including them would cause an immediate worldwide economic crisis as everyone pulls their money from US bonds.
by crooked-v 2y ago
Because including them would cause an immediate worldwide economic crisis as everyone pulls their money from US bonds.
- immibis 2y agoWhy aren't they pre-emptively doing that?
- disgruntledphd2 2y agoBecause Treasuries are the foundation of the global financial system, and there's basically nothing that could replace them completely.
- immibis 2y agoIt seems like it would be a good idea to move the global financial system off the shaky ground before it opens up into a bottomless sinkhole, but what do I know about global finances?
- disgruntledphd2 2y agoWhere do you put all the money? If there was a deep and liquid euro market, or if China removed capital controls then maybe.
- immibis 2y agoThe question doesn't make sense. Money can't be "put" in places - it always circulates.
- disgruntledphd2 2y agoOK, so I have $1 trillion in Treasuries, and I sell them. What do I do with the cash? Presumably I'd like other government debt. The trouble is that I need to put this into another market, so what do I choose? The total euro government bond market is 8 trillion euros, so I'm probably gonna move that market in a way that's not good for me. That's the point I'm trying to (badly, apparently) make. Am I missing something here?
- immibis 2y agoThe act of selling them distributes money from someone else to you. I recommend productive investments. Whatever the other person who had the money was doing. Growing corn, for example, or making cars.
- disgruntledphd2 2y agoI'll be sure to tell most pension funds and insurance companies that they should change their investment strategies, thanks!