the world’s central banks are obliged to finance the U.S. balance of payments deficit by using their surplus dollars in the only way that central banks are allowed to use them: to buy U.S. Treasury bonds.
"In the process, they finance the U.S. Government’s domestic budget deficit as well."
You don't want to hold "surplus dollars", don't run a trade surplus with the US.How would you suggest we stimulate US exports?You don't want to hold "surplus dollars", don't run a trade surplus with the US.
There’d be a lot of tech industry money at stake in a Trump trade war with China
If the nations in question don't want to be stuck with holding large amounts of dollars, just don't sell shit to US.
Easy peasy, done.Where do Americans find their computers, pharmaceuticals, and mineral fuels? Given a US population of 329.3 million people and its total $2.614 trillion in 2018 imports, that's roughly $7900 in yearly demand from each US resident.If the nations in question don't want to be stuck with holding large amounts of dollars, just don't sell shit to US.
Easy peasy, done.
orts
That would be our problem, not theirs. If they don't want to be stuck holding large amounts of dollars, just don't sell US large amounts of stuff.
Your attempt to make this mechanism of control that we are forcing onto other people, is not supported. ANd perhaps not rational.
I'm not sure, because you have not explained, at all, how you got to this conclusion.Three decades of neoliberal economic policies have hollowed out US manufacturing and burdened wage labor with oppressive levels of debt and taxation. Where do they turn for their electronics and pharmaceuticals if not to imports?That would be our problem, not theirs. If they don't want to be stuck holding large amounts of dollars, just don't sell US large amounts of stuff.
Your attempt to make this mechanism of control that we are forcing onto other people, is not supported. ANd perhaps not rational.
Like I already said, that would be OUR problem, not theirs.
If they don't want to be stuck holding large amounts of dollars, just don't sell US large amounts of stuff.
Your attempt to make this mechanism of control that we are forcing onto other people, is not supported. ANd perhaps not rational.