Current Affairs ⚔️ Ukraine - Russia War

[Rizzah]

Wouldn't they cripple the world economy and crash their own if they called in all their debt though? There'd be hardly anyone left to trade with.

China buys US treasuries to keep the Yuan low, to help exports. It's a bond with a maturity date, you can't just call in the debt. China can sell it on the bond market, but the US would still retain the 'borrowing'.

 

[wizard of Tauranga]

Can subs be detected by our surveillance intel? How do we know we're not surrounded by them... anyone know?

We’ve actually got underwater war ships patrolling Samoa as we speak…

 

[Inruin]

We’ve actually got underwater war ships patrolling Samoa as we speak…

Unmanned, underwater survey vessel.

 

[Worried2Death]

China buys US treasuries to keep the Yuan low, to help exports. It's a bond with a maturity date, you can't just call in the debt. China can sell it on the bond market, but the US would still retain the 'borrowing'.

Thanks Rizzah, can Trump abolish the treasury and forfeit the bond debt?

 

[Rizzah]

Thanks Rizzah, can Trump abolish the treasury and forfeit the bond debt?

It's not really an inconvenience to pay the bond interest, it's what stabilisers the US dollar value. The interest crisis is manufactured.
If he abolished treasury and defaulted he risks US dollar security (value).

 

[Noitall]

View: https://www.youtube.com/watch?v=HjxWBvMYSrE


This was an interesting watch a couple of weeks ago. It’s what it’s all about, the race for ai technology means you have an unbeatable army in what it possesses

 

[Rizzah]

It's not really an inconvenience to pay the bond interest, it's what stabilisers the US dollar value. The interest crisis is manufactured.
If he abolished treasury and defaulted he risks US dollar security (value).

There is a mechanism called Monetary Finance which allows the central bank (reserve bank) in a fiat monetary system to make new money, without debt. It's universally frowned upon in orthodox economics. Trump could use that to pay off the debt with a keystroke.

 

[kos]

There is a mechanism called Monetary Finance which allows the central bank (reserve bank) in a fiat monetary system to make new money, without debt. It's universally frowned upon in orthodox economics. Trump could use that to pay off the debt with a keystroke.

This was done during Covid in Aus not sure about Aotearoa

 

[Rizzah]

This was done during Covid in Aus not sure about Aotearoa

Pretty sure Aus used traditional fiscal policy - bonds and maybe some quantitative easing (QE) - monetary policy. QE is when the central bank buys bonds from the secondary bond market, increasing money supply - but via keeping liquidity in the private financial sector.
Monetary Finance is different, the central bank makes new money supply to finance govt spending, bypassing the bond mechanism (debt). More similar to how fractional reserve banking actually works, which is carried out by private banks when issuing loans.

 

[miket12]

Wouldn't they cripple the world economy and crash their own if they called in all their debt though? There'd be hardly anyone left to trade with.

Solomon Islands and Cook Islands?

 

[wizard of Tauranga]

Solomon Islands and Cook Islands?

Cookies are trying to jump into bed with China as well