They can sell the bonds, floodig the market with them, which would raise intrest rates and cheapen the value.we arleady saw this last week, which is what got the Bond market execs panicking on wall street. |
Trump is going to start announcing tariff deals that are substaintially the same as if none of this had happened and the damage to the US reputation and the markets will have been for nothing but to feed his ego. |
That probably won’t entirely save the market, and it certainly won’t restore our reputation. |
Exactly (I am the PP you are responding to) - the reputational damage will take years/decades to repair. |
Was this thread supposed to say Japan and China or Japan and Canada? |
Why are you bringing up China? This is about Japan and Canada. |
Japan is saying they are not going to rush the trade deal, probably because Trump is too chaotic and not trustworthy.
https://www.yahoo.com/news/white-house-pressed-fast-negotiations-105125985.html
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+1 thank you. |
US debt stands at 36+ Trillion. A supply shock like that only happens if Japan and China are willing to take a bath on the sale. The rates don't increase unless the price of bonds goes down. And drop in bond prices world probably get digested in weeks of not days. So Japan and China world have to be willing to suffer a loss of billions of dollars to create a temporary blip in us bond prices. As long as the US dollar is the reserve currency, there is an almost infinite demand for us treasuries. |
Do you have a link to a source for this? |
The PP doesn’t seem to understand that Trump is making China the reliable trading partner to the world. |
Japan and China (not Canada) hold the most U.S. debt |