China dumping bonds – how exactly would the fed salvation work?

[Anonymous]

Very possible ruin that is occurring in the bond market will continue, especially if China decides to strategically dump US treasuries.

Another poster had mentioned that the Fed could buy up all that bond and stabilize the treasury market, how exactly would that work and what would be the ramifications? I can’t imagine it’s a simple Execution like that with no consequences

[Anonymous]

Causes inflation.

[Anonymous]

Anonymous wrote:Causes inflation.

https://en.m.wikipedia.org/wiki/Quantitative_easing

[Anonymous]

China has also been buying gold. Seems like they have a long term plan to make themselves the reserve currency.

[Anonymous]

The Unconstitutional Federal Reserve will be dissolved and money printing will be returned to the treasury and replaced with gold/silver backed Constitutional Currency.

[Anonymous]

Confederate money will be good again. Dig it up out of Grandpa's back yard.

[Anonymous]

Anonymous wrote:The Unconstitutional Federal Reserve will be dissolved and money printing will be returned to the treasury and replaced with gold/silver backed Constitutional Currency.

Does anyone remember what happened the last time we had a gold standard?

[Anonymous]

Why did we start a war with China? The morons who voted for Trump are going to suffer the most.

[Anonymous]

Anonymous wrote:The Unconstitutional Federal Reserve will be dissolved and money printing will be returned to the treasury and replaced with gold/silver backed Constitutional Currency.

Yes comrade! Central banks bad! Let us return to wampum and gold which is perfect for the cold Soviet winter.

[Anonymous]

Anonymous wrote:Why did we start a war with China? The morons who voted for Trump are going to suffer the most.

"We" didn't start a war with China. This was a Trump administration induced disaster because JD Vance called them peasants and they know they have a stronger fiscal position than we do and a populace that is more understanding of economic hardship. Unprecedented in its idiocy, and unlike any other economic crisis where more factors came into play to cause this much economic loss.

[Anonymous]

Anonymous wrote:Very possible ruin that is occurring in the bond market will continue, especially if China decides to strategically dump US treasuries.

Another poster had mentioned that the Fed could buy up all that bond and stabilize the treasury market, how exactly would that work and what would be the ramifications? I can’t imagine it’s a simple Execution like that with no consequences

The US treasury market is the most liquid market for anything, in the world, it trades 24/7. China holds 700 Billion out of 36 Trillion. Chump change to Jay Powell. The Fed has cut their balance sheet over 2 Trillion since 2022, they could easily expand to buy the entire 700 Billion if China was to unload.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The Unconstitutional Federal Reserve will be dissolved and money printing will be returned to the treasury and replaced with gold/silver backed Constitutional Currency.

Does anyone remember what happened the last time we had a gold standard?

I’m sure someone on the social security list aged 125-150 can help you with that answer.

It limits economic growth b/c the Fed or Treasury constantly needs to get more gold as the economy grows. Totally impractical to switch back now that every major currency is fiat.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Very possible ruin that is occurring in the bond market will continue, especially if China decides to strategically dump US treasuries.

Another poster had mentioned that the Fed could buy up all that bond and stabilize the treasury market, how exactly would that work and what would be the ramifications? I can’t imagine it’s a simple Execution like that with no consequences

The US treasury market is the most liquid market for anything, in the world, it trades 24/7. China holds 700 Billion out of 36 Trillion. Chump change to Jay Powell. The Fed has cut their balance sheet over 2 Trillion since 2022, they could easily expand to buy the entire 700 Billion if China was to unload.

That's part of the picture. "At the end of January, foreign countries owned $1.32 trillion worth of U.S. mortgage-backed securities, or 15% of the total outstanding, according to Ginnie Mae.""

They dump that and good luck finding a mortgage. The real estate (residential) market would collapse.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Very possible ruin that is occurring in the bond market will continue, especially if China decides to strategically dump US treasuries.

Another poster had mentioned that the Fed could buy up all that bond and stabilize the treasury market, how exactly would that work and what would be the ramifications? I can’t imagine it’s a simple Execution like that with no consequences

The US treasury market is the most liquid market for anything, in the world, it trades 24/7. China holds 700 Billion out of 36 Trillion. Chump change to Jay Powell. The Fed has cut their balance sheet over 2 Trillion since 2022, they could easily expand to buy the entire 700 Billion if China was to unload.

That's part of the picture. "At the end of January, foreign countries owned $1.32 trillion worth of U.S. mortgage-backed securities, or 15% of the total outstanding, according to Ginnie Mae.""

They dump that and good luck finding a mortgage. The real estate (residential) market would collapse.

Wrong again, the Fed buys and holds MBS also. And you are talking world-wide, not just CN. Is the entire world going to dump, I don’t think so.

[Anonymous]

Everyone posting here will be in a factory job making iPhones for $3.60 an hour. It is not your place to concern yourself with complex issues of the economy.

Trump and the Republicans now control the economy through the state. Look forward to your factory jobs and thank the republicans and Trump.

No worries. Fox News(state media) will be on the loud speakers while you work next to your children!

These are the jobs you will have:
In 2023, iPhone makers in China's Foxconn Zhengzhou factory earned an average of 26 yuan ($3.6) per hour. This translates to approximately $400 to $800 per month, or $4,800 to $9,600 per year. While some reports indicate base salaries around 2,200 yuan ($324) per month, this doesn't include overtime, bonuses, or benefits. Foxconn also recruited additional workers and offered higher wages, including a three-month full-time bonus of 8,000 yuan.