4 ms·
China calls 100 year zero coupon bonds basically Technical Default on foreign debt, and rejected it. If you think about, it really is a default, because US bor
by slt2021 1y ago
China calls 100 year zero coupon bonds basically Technical Default on foreign debt, and rejected it.
If you think about, it really is a default, because US borrowers are being forced to exchange their cash into trust-me-bro letters.
Technically USD has been a trust me bro paper ever since Bretton Woods, but today the trust in the system is really at very low level, unlike before
- mcv 1y agoThat's the real damage Trump is causing. The US has traded on trust for the past 80 years, but they had that trust. Trump squanders that trust and then wants a new trust-based deal? That ship has sailed, and he's the one who sent it off.