Tijn Von Ingersleben
Gold Member
- Feb 5, 2018
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- #101
The US credit rating will be downgraded significantly if there is a massive sell off in the market.Not if the bond ratings are downgraded...a huge factor in bond investment is the Moody's Rating. If there are massive sell offs in the US market there WILL be a significant downgrade.Yeap...and...who will buy our bonds? Worst yet...how will we absorb the mass sell off of existing bonds?If we go into recession we are in big trouble. We are already spending like we are in a recession. Interest rates are very low. We already did a huge tax handout. Not any options to get out.China's response to the US trade 'effort' was to further devalue the Yuan. Their intention is to push us into a recession.
Xi Jinping alluded to a "New Long March" during a speech in May. The double meaning was in essence preparing the Chinese people for an impending recession.
Xi Jinping says China is embarking on a 'new Long March,' signaling no end to trade war soon
If the economy does go into recession...does not bode well for Trump
Trump has been calling for and probably receiving quantitative easing via the Fed...for some months now.
Trump Calls for New Quantitative Easing to Prop Up U.S. Economy
China has something like $1T? Last time I cared to check many years ago.
Last time we worked with countries like China. As China dumps other holders will be forced to move their assets in kind to prevent leaving their ass flapping in the breeze.
This is otherworld levels of fuckery that I don't even want to imagine.
Yeap...and...who will buy our bonds?
Based on our sinking yields.....everybody.
Treasuries are going to get downgraded?
United States - Credit Rating