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>And it would be reckless to assume the shocks are over, or that foreign investors’ faith in American assets, now shaken, can be magically restored. How much mo
by nabla9 2y ago
>And it would be reckless to assume the shocks are over, or that foreign investors’ faith in American assets, now shaken, can be magically restored. How much more can the system take before something really does break?
- kowabungalow 2y agoI think the biggest issue is that you have to put the assets somewhere and usually that meant a relationship to US currency. China has to go further with a proposal for how it is going to do a US proof global system. Telling the EU to stand up in unity will only work when the proposal makes the same kind of sense to the EU in the longterm as whatever the US is doing makes sense to the Republicans.
- JumpCrisscross 2y ago> China has to go further with a proposal for how it is going to do a US proof global system Commit to selling half of their $800mm of Treasuries [1] and replacing them with Eurobonds as part of a free-trade agreement. That, in turn, funds Europe’s defence detachment from the U.S. [2]. [1] https://en.m.wikipedia.org/wiki/Foreign-exchange_reserves_of_China https://en.m.wikipedia.org/wiki/Foreign-exchange_reserves_of... [2] https://www.reuters.com/world/europe/europes-plans-pay-surge-defence-spending-2025-03-19/ https://www.reuters.com/world/europe/europes-plans-pay-surge...