150
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
this post was submitted on 03 Dec 2023
150 points (96.3% liked)
News
36684 readers
534 users here now
Welcome to the News community!
Rules:
1. Be civil
Attack the argument, not the person. No racism/sexism/bigotry. Good faith argumentation only. This includes accusing another user of being a bot or paid actor. Trolling is uncivil and is grounds for removal and/or a community ban. Do not respond to rule-breaking content; report it and move on.
2. All posts should contain a source (url) that is as reliable and unbiased as possible and must only contain one link.
Obvious biased sources will be removed at the mods’ discretion. Supporting links can be added in comments or posted separately but not to the post body. Sources may be checked for reliability using Wikipedia, MBFC, AdFontes, GroundNews, etc.
3. No bots, spam or self-promotion.
Only approved bots, which follow the guidelines for bots set by the instance, are allowed.
4. Post titles should be the same as the article used as source. Clickbait titles may be removed.
Posts which titles don’t match the source may be removed. If the site changed their headline, we may ask you to update the post title. Clickbait titles use hyperbolic language and do not accurately describe the article content. When necessary, post titles may be edited, clearly marked with [brackets], but may never be used to editorialize or comment on the content.
5. Only recent news is allowed.
Posts must be news from the most recent 30 days.
6. All posts must be news articles.
No opinion pieces, Listicles, editorials, videos, blogs, press releases, or celebrity gossip will be allowed. All posts will be judged on a case-by-case basis. Mods may use discretion to pre-approve videos or press releases from highly credible sources that provide unique, newsworthy content not available or possible in another format.
7. No duplicate posts.
If an article has already been posted, it will be removed. Different articles reporting on the same subject are permitted. If the post that matches your post is very old, we refer you to rule 5.
8. Misinformation is prohibited.
Misinformation / propaganda is strictly prohibited. Any comment or post containing or linking to misinformation will be removed. If you feel that your post has been removed in error, credible sources must be provided.
9. No link shorteners or news aggregators.
All posts must link to original article sources. You may include archival links in the post description. News aggregators such as Yahoo, Google, Hacker News, etc. should be avoided in favor of the original source link. Newswire services such as AP, Reuters, or AFP, are frequently republished and may be shared from other credible sources.
10. Don't copy entire article in your post body
For copyright reasons, you are not allowed to copy an entire article into your post body. This is an instance wide rule, that is strictly enforced in this community.
founded 2 years ago
MODERATORS
That's not how that works. Bonds cannot just be asked back like that, they mature over a standard set of time. All you can do is try to sell them to other countries.
And if you do, you're just going to drive down the cost of US debt, the Fed will have to increase interest rates so that people buy from the fed instead. Basically all they're going to be able to do is put a lower bound on American interest rates.
That would be bad, but at the end of the day if the US government needs to fund itself it can still print money.
Also a fire sale on US debt means they have to actually trade it for something. That would create a massive correction in the Chinese economy as there surplus of excess capital and trade turns into a huge deficit, all the factory jobs disappear, American manufacturing booms, and they get the value of what they've produced over the last 20 years that since on the dollar as they fire sell the United States bonds.
Lose lose lose lose lose. I would happily encourage the Chinese to try to do this.
If I could gild this comment I would, it's spot on, thank you!