About That Phone Call With Xi On Tariffs

[Marener]

China would be in deep shit too if they did that. They cant just dump a shitload of bonds without losing a tremendous amount of money.

We need them more than they need us.

 

[Godboy]

Dump doesn't mean throw them away in this case. It means sell them.

Yes, i know. You cant just sell them like that. China would lose MANY billions of dollars if they did. The more they sell, the less the bonds are worth.

 

[d0gbreath]

Yes, i know. You cant just sell them like that. Those would lose MANY billions of dollars if they did. The more they sell, the less the bonds are worth.

The bonds aren't worth face value until they fully mature, so yes they would sell for less, to people that want to hold them until maturity. But, they would sell for their values today.

 

[Godboy]

We need them more than they need us.

How the fuck do you figure that?

 

[Godboy]

The bonds aren't worth face value until they fully mature, so yes they would sell for less, to people that want to hold them until maturity. But, they would sell for their values today.

The first thousand bonds will sell at full price, then the next thousand for less, then the next thousand for even less, and so on.

Its like stocks. If you have a million shares of Tesla and you start selling them rapidly, it will tank the stock value.

 

[Marener]

How the fuck do you figure that?

The bond market got Trump to back off tariffs. If China can manipulate the bond market, they can make us hurt.

China losing some money isn’t going to hurt them in the long run.

I'm being facetious, of course. Neither country really needs the other.

 

[bendog]

^^^ Well, there you go.

I don't know how this will turn out, but Trump thinks he has the upper hand on Xi.

Meanwhile, Xi is sitting on top of enough Treasury Bonds to fuck us up.

I wonder if Trump even knows how that works.

Trump said in his first term that defaulting on the debt was an option. and that would be the end of the dollar as the reserve currency. And Jina is making offers to the EU as we type.

 

[Godboy]

The bond market got Trump to back off tariffs.

Ive seen no news of Trump backing off tariffs on China.

 

[leftwinger]

^^^ Well, there you go.

I don't know how this will turn out, but Trump thinks he has the upper hand on Xi.

Meanwhile, Xi is sitting on top of enough Treasury Bonds to fuck us up.

I wonder if Trump even knows how that works.

Funny Mac&CheeseDic nary a peep on Bonds at the start of trade cleanup?But since some LW posted it, now Utah Mac has jumped on like an expert on all issues. Notstradamous Mac. He also can do better than Trump regime. He knows better methods. Like his do-nothing deep state butt-buddies over decades.

 

[Marener]

Ive seen no news of Trump backing off tariffs on China.

Neither country really needs the other. Both will survive. It's just a matter of how much damage they want to do to themselves.

 

[d0gbreath]

The first thousand bonds will sell at full price, then the next thousand for less, then the next thousand for even less, and so on.

Its like stocks. If you have a million shares of Tesla and you start selling them rapidly, it will tank the stock value.

Bonds and stocks are two completely different entities. Selling them won't tank the stocks value. Maybe just a little bit, but certainly not like stocks.

 

[Mac1958]

Trump said in his first term that defaulting on the debt was an option. and that would be the end of the dollar as the reserve currency. And Jina is making offers to the EU as we type.

Yep. That's now a real possibility. It could end up being some type of Yuan/Euro hybrid.

Then it gets existential for us. I don't even want to think about it.

MAGA. Right.

 

[leftwinger]

I saw that India has nearly completed trade modifications.

 

[Dont Taz Me Bro]

You mean like magats cozying up to Putin for the last 10 years?

So you're saying you're just like MAGA?

Like that?

What hurts Trump, doesn't necessarily hurt America.

America is not Trump. He doesn't have the support of a majority of America.

Neither do you or Harris would have won.

Trump is doing nothing in regard to our economic relationship with China. He is in a no win situation. The Chinese Communist Party will never make a deal with Trump, much less bow to any demands. That's not going to happen.

I agree and if it were up to me I'd have no relations with China whatsoever. We are literally feeding their military machine that will eventually be used against their neighbors and quite possibly us at some point.

On the otherhand, the rest of the world isn't going to bow to him either, and it's much easier to enter more friendly trade relations with China, than to continue playing stupid games with Trump.

The rest of the world can easily wait out Trump over the next four years, and renegotiate trade terms with another administration.

Contrary to popular belief, Trump isn't dealing from a position of strength.

The rest of the world has been taking advantage of us for a long time as well and there is nothing wrong with addressing that. Trump has gone about it in a disastrous way and that's the problem.

 

[Mac1958]

The rest of the world has been taking advantage of us for a long time as well and there is nothing wrong with addressing that. Trump has gone about it in a disastrous way and that's the problem.

The ends of the spectrum just don't understand that.

If there is a problem, the WAY you address it is key. Heavy-handed tactics rarely work.

This country just doesn't fucking learn that.

 

[bendog]

Yep. That's now a real possibility. It could end up being some type of Yuan/Euro hybrid.

Then it gets existential for us. I don't even want to think about it.

MAGA. Right.

Well, I think Trump will default if the EU and Jina do a deal on BRICS. And we will be Britain.

He's an egomaniacal moron who thinks defaulting on natl debt is like giving the Russians all his liquid assets and getting to start over. Our personal and governmental borrowing rates will go up .... we're not talking just fractions here.

Tariff RATES really don't have anything to do with this. It's personal to him. And the EU has to make a choice between Xi or Trump.

 

[Mac1958]

And the EU has to make a choice between Xi or Trump.

Exactly. And right now, China is comparably stable.

Never, ever would I have thought I would say that.

 

[bendog]

So you're saying you're just like MAGA?



Neither do you or Harris would have won.



I agree and if it were up to me I'd have no relations with China whatsoever. We are literally feeding their military machine that will eventually be used against their neighbors and quite possibly us at some point.



The rest of the world has been taking advantage of us for a long time as well and there is nothing wrong with addressing that. Trump has gone about it in a disastrous way and that's the problem.

HE's simply upped the ante on the EU. Not that Biden was awake even before caught dementia, but Trump's pissed them off so bad they may think Xi is less insane.

 

[Tumblin Tumbleweed]

Trump should be impeached 27 times.

Every single thing he does is 100% the wrong thing to do and every thing he says is 100% a lie.

Joe Biden did 100% everything perfectly and he never once lied.

Trump believes the earth is round. Is it?

Who do you think really believes this horseshit? Democrats? You seem to live in your own binary, partisan world.

 

[Mac1958]

Who do you think really believes this horseshit? Democrats? You seem to live in your own binary, partisan world.

Jesus 2.0 says the countries are lined up outside the Oval Office door, ready to bend the knee to the Great One.

Okay, neat. I'm sure that the economic powerhouses of Namibia and Malawi will be wonderful victories for him.

Anyway, the countries that actually matter are China, the EU, Japan, Canada, Mexico and South Korea.

We'll see how that goes.