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

submitted 17 hours ago by yogthos@lemmy.ml to c/canada@lemmy.ca

25 comments fedilink hide all child comments

you are viewing a single comment's thread
view the rest of the comments

[-] kent_eh@lemmy.ca 4 points 12 hours 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 3 points 12 hours 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.

[-] theacharnian@lemmy.ca 1 points 11 hours ago

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

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