Please be responsible for your own actions and words, and avoid blaming others or making excuses for your behavior. If you make a mistake, apologize and take steps to correct it.
- Manlobbi
Halls of Shrewd'm / US Policy
No. of Recommendations: 11
“European countries own $8 trillion of US bonds and equities, almost twice as much as the rest of the world combined,”Imagine if Europe decides that funding our debt is not safe.
Trump is ignorant.
And Republicans twiddle their thumbs while Nero plays his violin.
https://finance.yahoo.com/news/europe-wield-8-tril...
No. of Recommendations: 1
AlphaDog,
It seems you really don't have an understanding of how big time finance works. Nor do I really, but you should realize that if you are owed $8 Trillion in debt by a counter party, the LAST THING IN THE WORLD you want to do is anything which might risk lessening the value of the debt you hold.
So, the creditor nations are actually partners with the United States in terms of the value of the U.S.'s debt instruments which are held by these creditors. They are counterparties but neither side has anything to gain about diminishing the value of these debt instruments.
No. of Recommendations: 2
the creditor nations are actually partners with the United States in terms of the value of the U.S.'s debt instruments which are held by these creditors.
Nope.
Want to guess yet again?
Or do you give up because you do NOT have a clue (as usual)?
I explained this, in detail, 10-15 yrs ago on the AARP message boards.
Someone stated (to summarize):
Because there is no secondary market for the securities held in the Social Security Trust Fund, they have no value. After doing a hearty ROFLMAO, I had to explain to him WHY there does not *need* to be a secondary market for those securities. FYI, those securities are NOT available to any other buyers of Treasury debt. Do YOU know why? I do.
Now, entertain us. This should be FUN !!! We are all waiting with bated breath for your explanation....
No. of Recommendations: 7
I've been mulling that same thing. The USA is acting like an entitled, spoiled brat 10 year old, acting like an entity that can and will demand anything from anybody.
Why would the World not rebel against the petulant whims of the
USA ?
Americans have really not totally felt the fact that we are spending
like a drunken sailor. America has no fiscal discipline. The World
has ignored that over the last few decades, maybe because the USA has
played the role of peacekeeper and facilitator of stability and order.
All of that is gone under Trump.
It doesn't make much sense that the rest of the World is going to just
bend over and take it from the USA, now that we are acting like
a neurotic, crazed lunatic.
And sure, the USA can "print" dollars to its hearts content. That does not mean the rest of the World can't start demanding many, many
more dollars for purchases made in US Dollars.
Trump is playing with fire while surrounded by gasoline. He has the
emotional maturity of a spoilt 10 year old Richy-Rich kid who has never heard the word No.
link is to the list of buyers of US Treasuries. Definitely see
EU Country's, and China on the list.
https://ticdata.treasury.gov/resource-center/data-...
No. of Recommendations: 1
jerry,
I'm not going to discuss international finance any further with a knuckleheaded ventriloquist's dummy.
Ask albaby1.
He has way more patience than I, maybe he can explain it better to you, on your "level" (i.e. an inanimate block of wood).
No. of Recommendations: 5
Why would the World not rebel against the petulant whims of the
USA ?
The fact that we’re not in open rebellion against this regime is convincing the world that it might have to.
They’ve given us a lot of rope, but the rope is running out as the peace president basically declares a tariff war on the world and threatens a series of armed attacks on various countries.
No. of Recommendations: 1
DownSouthJoke,
Like many another leftist who posts here, you're "splitting." You're allowing your cognitive biases and personal psychological issues to see things involving Trump and/or the USA from only one perspective--that Trump is pure evil and anything he does or says is inexplicable and pure evil.
Far from it.
Evidently the U.S. has been interested in acquiring more control of Greenland for a long long time.
Way before Trump.
So, my guess is that Trump has seen some contingency plan material on why it would make sense for the U.S. to do so, and rather than do it behind the scenes, he has put the idea out in the open and it's on the table for negotiation/discussion.
That's what Trump does. That's one of his standard negotiating techniques.
He's single handedly moved the Overton window on this issue.
At a minimum, he has forced NATO to explicitly acknowledge their responsibility for Greenland and forced them to actually pay attention to it. Maybe his real objective is to extract monetary concessions from the other NATO nations to beef up our defense forces in Greenland and to have the European NATO nations pay for it.
Yes it's 5-D chess and not only are you guys only playing checkers, you're not even playing checkers--you're finger painting with the stuff in your diapers.
No. of Recommendations: 8
It seems you really don't have an understanding of how big time finance works. Nor do I really, but you should realize that if you are owed $8 Trillion in debt by a counter party, the LAST THING IN THE WORLD you want to do is anything which might risk lessening the value of the debt you hold.
Apparently you’ve never heard of the expression “You don’t bite the hand that feeds you.”
Step 1: The Europeans slow down the purchase of U.S. debt. That will drive up U.S. interest we have to pay, increase our debt, and trigger even higher inflation.
Step 2: Let existing debt mature without replacing it.
Step 3: Support a new world currency to be used internationally.
Step 4: The U.S. is fucked.
Yes, Trump is that stupid.
No. of Recommendations: 0
I'm not going to discuss international finance any further with a knuckleheaded ventriloquist's dummy.
Then you need to stop looking in your mirror.
If you had a clue about international finance, then you MIGHT be able to show that fact.
The point is you REFUSED. So it is reasonable to state you have zero clues about finance at any real level above your own personal matters. Which is fine--you chose, no one else.
No. of Recommendations: 2
No, you are that stupid.
You don't get it.
At all.
If Europeans are holding $8 Trillion worth of U.S. government debt, and they "drive up" the cost for the U.S. to borrow more (i.e. drive up the necessary interest rate payable on the bonds), they are simultaneously DRIVING DOWN the value of the $8 Trillion of debt they already hold.
So that ain't happening.
Ever.
No. of Recommendations: 1
If Europeans are holding $8 Trillion worth of U.S. government debt, and they "drive up" the cost for the U.S. to borrow more (i.e. drive up the necessary interest rate payable on the bonds), they are simultaneously DRIVING DOWN the value of the $8 Trillion of debt they already hold.
Your statement (quoted above) documents you do NOT understand international finance.
What YOU did NOT identify was the TERM OF THE DEBT HELD--which is critical in this type of decision-making.
If they hold relatively SHORT-TERM debt, then long-term rates are irrelevant because they will have REDEEMED the vast majority of their held US debt for full value. Meantime, long-term debt with have fallen off a cliff in terms of value in the secondary market because US govt debt will be deemed to NOT be a safe/reliable investment any more.
So, large amounts of investment funds go ELSEWHERE for obvious reasons.
No. of Recommendations: 1
knucklehead smith,
go get your wooden head polished, you're boring me.
