Canada increased holdings of U.S. debt by 27% last year (www.visualcapitalist.com)

submitted 1 day ago by yogthos@lemmy.ml to c/canada@lemmy.ca

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[-] theacharnian@lemmy.ca 5 points 1 day ago

It gives us a "nuclear button" where we can threaten with massive sell-offs that could tank the value of US bonds. To counter it they would have to basically raise interest rates and/or print money. Sure it would hurt us too, but not before hurting them more. Now if you also place this in a context of coordination with other debt owners (Europeans, Chinese), we can really hurt them.

[-] yogthos@lemmy.ml 3 points 1 day ago* (last edited 1 day ago)

First question is, massive sell off to whom? Second, it's obviously going to have a have a huge impact on our own economy. It's not going to hurt them more because the US is a much bigger economy than us. Can you show me a historical instance of this sort of threat actually working in practice?

If this gave any actual leverage then China would be keeping their bonds instead of doing a fire sale right now. The only countries buying up US bonds are the ones that are under the US thumb right now.

[-] kent_eh@lemmy.ca 6 points 1 day ago

First question is, massive sell off to whom?

Any bonds that are at their due date are required to be paid out by the US treasury.

Most holders of US bonds have a revolving collection of them, so some are coming due on a regular and continual basis.

Admittedly, that's not a mass sell-off, but it still puts pressure on the US if everyone starts doing it .

[-] yogthos@lemmy.ml 5 points 1 day ago

Sure, if everybody started dumping US assets in a coordinated fashion that would hurt the US, we both know is not going to happen though. So, in reality Canada is simply making itself more dependent on the US. There's no need to do mental gymnastics to pretend that this is some 4D chess.

[-] kent_eh@lemmy.ca 1 points 16 hours ago

in reality Canada is simply making itself more dependent on the US.

And doing so in a relatively carefully manner so as not to hurt ourselves unnecessarily.

[-] yogthos@lemmy.ml 1 points 15 hours ago

Making ourselves more dependent on a hostile power is precisely what's hurting us unnecessarily. Incredible that people can't seem to understand this.

[-] Jhex@lemmy.world 1 points 15 hours ago

So what's your point here?

IIT you are both arguing it's bad Canada held onto these investments while saying Canada cannot actually dump them without hurting itself

[-] yogthos@lemmy.ml 0 points 15 hours ago

No, I'm saying Canada should not have continued increasing investments, which is what we did, and we should have been dumping them instead. And the sooner we start doing that the less pain we will be in long term. Let me know if any of that is still unclear to you.

[-] Jhex@lemmy.world 1 points 13 hours ago* (last edited 13 hours ago)

Hmmm looks like Canada has increased that investment for the last 4-5 years. Without this year's report, it's hard to see if we still kept that 4-5 year old strategy going or not.

Keep in mind that, until the Orange Pedophile's second term (so early last year), Canada was only paying lip service to moving away from the USA

And yes, you are talking on both sides of your mouth... here you tell me this:

and we should have been dumping them instead

While responding to another person about the exact same "dump" strategy:

[-] yogthos@lemmy.ml 1 points 13 hours ago

that's literally explained in the reply to the comment you screenshotted

[-] Jhex@lemmy.world 1 points 13 hours ago

yes, and you seemed to be arguing AGAINST that poster... hence my question

Also, letting bonds expire is not selling them so again, you are talking both ends here

[-] yogthos@lemmy.ml 1 points 12 hours ago

You seem to be utterly unable to actually engage with what's being said. Go read my reply to that comment. I'm not challenging that the bonds can be redeemed. Why don't you actually address what I said instead of accusing me of talking of both ends here?

[-] Jhex@lemmy.world 1 points 12 hours ago

I posted a screenshot of what you said... and now you want me to find another of your post that contradicts it... that is exactly what I am pointing out here.

If you don't want to be called out, maybe be a bit clearer?

[-] yogthos@lemmy.ml 0 points 11 hours ago

Once again, I ask you to specifically explain what part what my argument you disagree with. I've already addressed the screenshot you posted. You completely ignored the rest of what I said. And I strongly suspect that you either don't understand what I wrote, or you're intentionally trolling here. Which is it?

[-] Jhex@lemmy.world 0 points 10 hours ago

Once again, I ask you to specifically explain what part what my argument you disagree with. I’ve already addressed the screenshot you posted.

You actually did not, you pointed me to someone ELSE who corrected you.. but whatever, it seemed very clear you just got defensive and started insulting people, not interested in your opinion anymore.

Have a nice day

[-] yogthos@lemmy.ml 0 points 10 hours ago

I've given you detailed explanations, and you simply ignored them. I asked you to point out what you disagreed with specifically, and you started dancing around that. Sounds like the answer to my question is that you are just trolling here, and you're not interested in having a good faith discussion.

Bye.

[-] theacharnian@lemmy.ca 1 points 1 day ago

I don't pretend to know anything about international finance. I'm repeating what I've heard.

[-] yogthos@lemmy.ml 0 points 1 day ago

It's also worth thinking about what you hear as well. People say all kinds of things, and a lot of time it's just nonsense. As I pointed out, if holding US debt gave any actual leverage, then China would be doing that instead of selling it off now.