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Foreign countries like Japan and China own around $1.8T in US bonds. These are valued in dollars, like stocks.
by RachelF 2y ago
Foreign countries like Japan and China own around $1.8T in US bonds. These are valued in dollars, like stocks.
- nabla9 2y agoYes. That's what I said "Devaluing dollar does not reduce debt measured in dollar" The US would still have to pay the debt in Dollars. Devaluation affects currency exchange rates. Debt would be less valuable in Yen and Renminbi but just as expensive for the US government.
- nthingtohide 2y agoDoesn't Europe and Japan have dollar swap lines with US? So ultimately it is US buying its own bonds through Japan to create an illusion that there exists enough external demand.