America needs to default

[rupol2000]

According to the dirty rules that now exist in the world, default is beneficial for America.

All government bonds and assets that are sold on the market are, in fact, paid by the Americans themselves with inflation.
If now China starts dumping treasuries. hyperinflation begins.

But under international financial laws, the country is not responsible for sovereign debt. If America defaults, it will save a lot of resources. If the assets are sold gradually, they will fall on the shoulders of the Americans.

It can serve as a blackmail tool. America can say: if you refuse the petrodollar, we will default. In this case, China will lose all of its dollar-denominated assets.

 

[rupol2000]

But Biden and the Trumpsters won't do that because they've already sold out America.

 

[Toddsterpatriot]

If now China starts dumping treasuries. hyperinflation begins.

Why?

 

[rupol2000]

Why?

Because the Fed will have to buy them and the emission will increase the money supply
While they are in the Chinese Central Bank, these dollars are frozen.

 

[Toddsterpatriot]

Because the Fed will have to buy them and the emission will increase the money supply

So China now has a huge pile of $20s.
Why will that be a problem?

 

[rupol2000]

So China now has a huge pile of $20s.
Why will that be a problem?

Because when there is a lot of money in the economy, this is inflation.

The second problem is that China will demand goods for this money, and you will have to do without a vacation, you will be forced to work harder. For a dollar, a product made in the USA is promised.

 

[Toddsterpatriot]

Because when there is a lot of money in the economy, this is inflation.

The second problem is that China will demand goods for this money, and you will have to do without a vacation, you will be forced to work harder. For a dollar, a product made in the USA is promised.

Why is the pile of Chinese $20s "in the economy"?

The second problem is that China will demand goods for this money

They'll buy a lot of our stuff, eliminate our trade deficit and boost our GDP?

Sounds awful!

 

[rupol2000]

The country is not obliged to pay off sovereign debt, it has the right to default.

This is not beneficial for foreign holders, their assets will be lost.

I think that China expects Biden to smoothly buy back their debt without declaring a default. For this, they will provide his son with another hosting for porn with Chinese prostitutes.

 

[Toddsterpatriot]

I think that China expects Biden to smoothly buy back their debt without declaring a default.

We can ship pallets of paper for their Treasuries.

Next week work?

 

[rupol2000]

Why is the pile of Chinese $20s "in the economy"?

The second problem is that China will demand goods for this money

They'll buy a lot of our stuff, eliminate our trade deficit and boost our GDP?

Sounds awful!

Yes, it's terrible, you're just stupid and don't understand economics. GDP is an idol for fools, the best GDP is where there are many slaves who are forced to work for free and a lot. The United States is increasing its GDP, they even take into account private housing without rent.
In a rich country, real GDP is low because they always work little and get a lot

 

[Toddsterpatriot]

the best GDP is where there are many slaves who are forced to work for free and a lot.

You're lying.

 

[rupol2000]

By the way, this is another proof that Trump is at the same time with Biden. He, as a businessman, know this. He deceived the voters.

 

[rupol2000]

You're lying.

It's self-evident, you're just a fucking nerd. If you work a lot and eat little, your GDP grows. Try it at home and you will understand it is so.

 

[Woodznutz]

Because the Fed will have to buy them and the emission will increase the money supply
While they are in the Chinese Central Bank, these dollars are frozen.

Bonds and other securities are a claim of ownership on U.S. dollars, a note of indebtedness, not ownership of actual dollars. There is no giant Chinese mattress that holds the dollars. In order to sequester actual dollars China would have to redeem the bonds for...dollars.

No problem. U.S. securities are in high demand elsewhere. They will still be among the most secure in the world.

Why China won't dump its huge U.S. Treasury bond hoard

Rumors fly periodically that Beijing will shrink its $1.2T in U.S. debt -- here's why that isn't likely to happen

www.cbsnews.com

 

[rupol2000]

Bonds and other securities are a claim of ownership on U.S. dollars, a note of indebtedness, not ownership of actual dollars. There is no giant Chinese mattress that holds the dollars. In order to sequester actual dollars China would have to redeem the bonds for...dollars.

No problem. U.S. securities are in high demand elsewhere. They will still be among the most secure in the world.

Why China won't dump its huge U.S. Treasury bond hoard

Rumors fly periodically that Beijing will shrink its $1.2T in U.S. debt -- here's why that isn't likely to happen

www.cbsnews.com

Russia dumped treasuries a few years ago.
You are mistaken, they are bought precisely for dollars. China pays for it with its dollar export earnings.

 

[Woodznutz]

Russia dumped treasuries a few years ago.

How's that working out for them? Devaluing the dollar hurts Russia more than us. A large part of their domestic economy relies on U.S. dollars and other currencies. Another mistake they make is believing the strength of the dollar is tied to the oil trade. It's tied to the security, productivity, and taxing authority of America.

You are mistaken, they are bought precisely for dollars. China pays for it with its dollar export earnings.

My point is that money moves, it's not static. No matter who owns the cow it still needs to be milked.

 

[Woodznutz]

According to the dirty rules that now exist in the world, default is beneficial for America.

All government bonds and assets that are sold on the market are, in fact, paid by the Americans themselves with inflation.
If now China starts dumping treasuries. hyperinflation begins.

But under international financial laws, the country is not responsible for sovereign debt. If America defaults, it will save a lot of resources. If the assets are sold gradually, they will fall on the shoulders of the Americans.

It can serve as a blackmail tool. America can say: if you refuse the petrodollar, we will default. In this case, China will lose all of its dollar-denominated assets.

Or we can pay our debts with cash rather than renewing the debt. This will end the cycle of 'debt with interest', the interest being the inflationary element. This will sow equity into the economy rather than more debt.

 

[rupol2000]

My point is that money moves, it's not static. No matter who owns the cow it still needs to be milked.

This money does not move. When China buys treasuries, it is equivalent to a freeze, the money issued by the Fed is simply extinguished.

 

[BackAgain]

Where our nation’s economic basis is the full faith and credit of the Republic, “advice” to default is utterly insane.

Suggestion made in OP is rejected.

 

[rupol2000]

Or we can pay our debts with cash rather than renewing the debt. This will end the cycle of 'debt with interest', the interest being the inflationary element. This will sow equity into the economy rather than more debt.

The interest on these assets is ridiculous.
It is not profitable for you to buy them. The system of export appendages is built precisely for this so that they are not bought out, this is a hidden tribute from the Chinese. Essentially a political tool. This is also called export of inflation. The Chinese pay for the issue of the Fed in this case.