and it's back to 4.9%, there will always be domestic demand for U.S. Treasuries. When Japan or China (or anyone abroad) sells their Treasury they are selling either to another country or U.S. financial institutions. Japan/China anyone else cannot reduce supply of Treasuries, only the owners change.

otp.landian.vip

All a promortalist is saying is let's make it happen sooner rather than later (and preferably peaceful rather than some disease or accident), to prevent your future suffering, and, more importantly, the suffering your existence will cause to all the other sentient beings.

Wow they killed one person whoo. Suffering is over for all sentient beings! lets go

It's not like you can end all suffering, delete the universe by snapping your fingers.

fair, but what is he going to do? nationalize them? a fine? words alone don't do anything

Unlimited QE or devaluation erodes the dollar’s purchasing power and credibility.

This isn't necessarily true. As I said, bond purchases isn't money printing but rather an asset swap, swapping one asset, treasuries, with reserves, it doesn't create net financial assets. That's what fiscal policy does.

While the US won’t run out of money, unchecked debt could trigger stagflation, a dollar crisis, or a loss of geopolitical leverage.

No it won't. Private debt isn't same as public debt, what I said applies to all countries with sovereign currencies, look at Japan's public debt to GDP ratio. The 1970s stagflation was in large part due to oil price shock and capitalists/workers fighting over real output.

Credit ratings agencies have downgraded JGBs many times in the past yet yields remained low and demand for these assets high. 1 2 3 4

Another good example was Italy, before they joined EMU Euro. Credit ratings agencies downgraded Italian Lira debt because ' fiscal trajectory', 'Unsustainable path' yet they never defaulted on Lira debt. This was despite low growth, and high(er) inflation. There was no risk of default in the first place.

While Moody’s critique conflates the exchange rate and credit risk, they’re still connected. A weakening dollar makes dollar-denominated debt cheaper for the US to service, but foreign holders like Japan face losses.

U.S. sovereign debt can always be serviced, as I said, it's not really debt. It is debt in the same way cash in your wallet is debt, except that there is interest, which is a basic income to bondholders.

If markets anticipate perpetual devaluation, demand for treasuries could collapse, forcing interest rates up and destabilizing the economy.

It won't, short term rates are set by the Fed, and if the interest rate goes beyond its tolerance it has to soak up excess debt to maintain its target rate. Demand for treasuries will always be there because even if foreigners don't want it, Americans do as it is a risk-free asset.

If they dump Treasuries to cut losses, the fed would have to monetize debt at scale, risking hyperinflation.

No, if they dump Treasuries, they lose their foreign exchange reserves and as the exchange rate depreciates, they'll get less and less of whatever other currency they are trying to buy. The reason why Chinese and Japanese central banks have reserves in the first place is because they buy up excess Dollars in the forex market so as to maintain trade competitiveness (real effective exchange rate).

If the US unilaterally alters debt terms extending maturities or capping rates, that also signals unreliability.

That is an actual voluntary default. Not the same as exchange rate risks.

Foreign creditors, who hold 30% of US debt, could exit, triggering a liquidity crisis.

There won't be a liquidity crisis, U.S. Govt is always there to supply liquidity if needed.

The debt is sustainable, no sovereign currency debt is unsustainable, the U.S. Government can at any time can buy back all the debt from willing sellers and give them U.S. Dollars, this merely replaces U.S. Treasuries with U.S. Dollars (in form of bank reserves), both liabilities of the U.S. Government.

Moodys could downgrade because there have been whispers of U.S. Govt changing duration and interest on existing debt (very stupid) owned by foreigners, which is a form of voluntary debt. Sovereign debt does have voluntary default risk, but no involuntary default risk. But they aren't saying that, they are saying the debt itself is 'unsustainable' which isn't true.

They could argue they are downgrading because of risk of inflation being above interest rate or exchange rate depreciation. But that is not the same as credit risk, they are saying 'credit risk' not 'exchange rate risk'.

And you can work on not being a dick.

They are so stupid, calling for boycott of Turkey and Azerbaijan because they sold weapons to Pakistan used during the recent ... skirmish? They think Muslims are a hivemind while in reality, Azerbaijan sells oil to Israel with the help of Turkey. Trade under capitalism is pure opportunism, they sell to anyone with money.

Zero mention of the fact that the militants used American M4 Carbines during the April 22 attacks.

Are they randomly adding "talk about white genocide in south Africa" to the prompts?

India and Pakistan Talked Big, but Satellite Imagery Shows Limited Damage