You are correct. Japan has taken even more. Take a look at Canada's recent actions concerning bonds—they're worth noting. The bond market remains the elephant in the room, quietly influencing everything behind the scenes.
Between Canada, Japan, China and the EU we hold enough US debt it's really a matter of how bad we want to hurt the US. They say the US might be in a recession and that's not to anyone's benefit. Trump can't even hold on to his 90 day threat. He'll probably fold on Monday.
I'm not an economist and after about 10 minutes of reading I can see why countries like Japan bought bonds. I know Trump is a moron but how could anyone in his admin not see this coming? I know China is positioned like Carney has. 400 million people 1 gotta have a PhD.
Please note it’s not just China. Canada, Japan and EU also hold a lot of treasury bonds. In fact more than China if memory serves. So who want to guess why all of this is even happening. CAUSE THE US IS BROKE AND THE DOTARD IN CHIEF IS TRYING TO STIFF ALL THE CREDITORS AND STEAL WHATS LEFT!
They can't call them up. No one is obliged to pay back the principle of a bond before it matures. What China (and Japan) could do is dump US bonds in the secondary markets at below face value increasing yields. This means Treasury would have to issue new bonds with higher interest rate to compete.
I’ve maintained, since maybe 2000, the Chinese could walk away from US bonds.
- The Chinese might hurt, bigly
- OTOH, the U.S. would be so deeply embedded in China’s ass that recovery would be impossible. I hold little hope.
Trump et al are too stupid…
The problem is the US can just print money. In the past I think the world consumer confidence in the US meant they could without massive inflation. Now not so much. This could be China's opportunity but with 5% GDP growth do they want to risk it?
It doesn't make much difference. With Donald Trump stinking up our White House, we're already up Shit Creek without a paddle! Do you know what I'm saying Bubba?
Japan and China hold the vast number of US treasury bonds. Unfortunately the average American has zero understanding of that, or what happens when those two countries Trump has picked a trade war with, start dumping those bonds.
..but they, and the dickhead in the White House are about to find out!
First, it would be better to show the US as unreliable on the world stage. Then present China as a more stable economic partner.
Once this is done, then you cash out .
That’s not how the bonds work Merlin. They pay a coupon until maturity. They could sell them for cash but can’t demand repayment on demand. That’s not how it works.
Canada, Japan & the EU own $3 Trillion - they recently started slowly selling them off and threatened to speed up calling in their chits - all of a sudden tariffs on their countries were put on hold 90 days - a far more serious financial threat than what even China could bring forth.
Holy crap! That might cause a real problem for the maximum tax cuts headed for the billionaires.
Just kidding, no need to get yippy, he'll just kill public schools, SS & MM, nutrition for kids, VA benefits, environmental protections, decimate the FAA, NASA, cyber security, VOA & close museums.
lol, plus I read today they're already $150B over spending to this time last year. So those "cuts" haven't done anything. I have no clue if there's lag but right now the US is spending more money.
Please do. Most of us already know how to live without, BUT the 1% will have another thing coming! I hope they gravel in a homeless shelter…provided by the very people they shat on.
China said they’re basically going to ignore any more temper tariffs because it’s already high enough that it’s not worth trading with us. Treating him like the child he is.
If China dumped all that debt at once, it would crash or market, escalate interest rates to a point it would bankrupt the treasury, and China would only getting back pennies on the dollar for the debt it bought. They would be losing a huge amount of money doing it.
I'm currently reading the book "Chokepoints, American Power in the Age of Economic Warfare" by Edward Fishman. The US has long used their economic supremacy to control the world. But, sometimes when it was really needed, they failed to act.
Just googled: “Treasury bills are generally not callable. This means the U.S. government, as the issuer, cannot redeem or call back the Treasury bill before its maturity date.”
Yah from what I understand removing the USD as the default currency means they can't print money and sell bonds to pay bills. So it's a huge power move but it's a against a massive economy.
I don't think you can just "cash in" bonds. You can sell them on the secondary market (which wouldn't be awesome in that volume) but you can't just call them due.
That is the scuttlebutt Michael,
Coordinated bond sell off by all the countries that Trump shat in the face.
That Trump shat in the face.......
That Trump shat in the face......
The US government borrows money by selling bonds, like saying, "Lend us $10, and we’ll pay you back with extra later!" China bought a lot of these—$761 billion! Now, they’re selling some. Why? Maybe they need cash or worry about the US paying back.
China sells US bonds to banks, investors, or other countries (like Japan or Europe). The US Treasury can also buy them back. It’s like a used toy market—someone always wants a deal!
1. Higher rates: If too many sell, the US must offer higher interest to attract buyers, making borrowing costlier.
2. Dollar dips: Selling floods the market, potentially weakening the dollar.
3. But… If others step in (like US banks), the impact is smaller. Big sales hurt, but not instantly.
When China sells bonds, it’s like a friend taking back their toy. If too many do it, the US might have to offer higher interest to borrow. But others (like banks) can still buy them. It’s not a crisis yet, but the US must be careful not to owe too much!
We should start selling states to China to pay off the debt. Start with oh IDK, Ohio, Arkansas, Alabama, Mississippi, Idaho, North Dakota...places we really don't need
Just how dose a responsible government allow a foreign adversary to attain that much economic control. This isn't a left or right issue it is a government leadership problem.
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If members of the military don't want war with China, they need to start stepping up.
Unless, of course, they are already magafied. If so, I wish them (all of us) luck in the war.
Nobody would want to cash ALL IN at once, that would be as bad for the bearer as it would to the USA.
Nobody 'wins' by bankrupting the USA and 'real leaders' know this... but it's time Trump learned a lesson & faced consequences.
Learn Mandarin!
🤣😭🤣😭
I’ve maintained, since maybe 2000, the Chinese could walk away from US bonds.
- The Chinese might hurt, bigly
- OTOH, the U.S. would be so deeply embedded in China’s ass that recovery would be impossible. I hold little hope.
Trump et al are too stupid…
..but they, and the dickhead in the White House are about to find out!
Once this is done, then you cash out .
The explanation starts on p. 36 of the free, downloadable book called, The Seven Deadly Innocent Frauds of Economic Policy: https://bsky.app/profile/bobgorman8791.bsky.social/post/3lmjzfxx3i223
Just kidding, no need to get yippy, he'll just kill public schools, SS & MM, nutrition for kids, VA benefits, environmental protections, decimate the FAA, NASA, cyber security, VOA & close museums.
You should all leave to China, since we will make sure that it NEVER will become China political terms HERE.
Dems are sad mislead brainwashed individuals.
Just googled: “Treasury bills are generally not callable. This means the U.S. government, as the issuer, cannot redeem or call back the Treasury bill before its maturity date.”
Xi wins.
Coordinated bond sell off by all the countries that Trump shat in the face.
That Trump shat in the face.......
That Trump shat in the face......
2. Dollar dips: Selling floods the market, potentially weakening the dollar.
3. But… If others step in (like US banks), the impact is smaller. Big sales hurt, but not instantly.