We borrow from The federal reserve bank mostly. A lot of our debt something around 60 percent is held by the private bank that holds the reserve currency for the world. China’s yuan a gold reserve notes are reserve currency in about 20 Country as well.
bejing holds 20 percent of our debt. The rest is held by private firms in forms of treasury bonds.
Another large part about 1 percent is held as savings bonds and 50 percent have reached maturity dates uncashed we do not pay interest after thirty years. All forms of debt from credit cards to mortgages are included in the national debt which is around 22 trillion. We take in 1 trillion and spend 2.6 trillion. Interesting interests payments by 2030 as the fed raises rates will be our largest percent of spending eclipsing national defense.
We own the grain store. Stop the shipping of grain to China. Starve them to negotiate a better deal whether it works or not we will see but this what our president does to make a great deal. Read art of the deal best deal is made when you destroy any position your adversary has to say no at the table.
Uhhh yeah they can. They can start selling their US Treasury holdings and squeeze us like a lemon. If they were to publically announce to sell their holdings as retaliation others would sell and rates would go up HUGE...that alone could seriously harm this country.
They also hold other assets that if they wanted to play dirty could make life difficult.
What people are not understanding is this decision of Trump's is forcing INFLATION down our throats...inflation has held in check much in part due to cheap goods China sells to us and we buy. If inflation comes and treasury prices decline more we are in for some serious problems...let alone the damage this has to market caps of multi national corps.
Yes if it was known but the fed and the wbo along with imf could
eas set up a shell corporation in Belgium to buy the bonds and slowly sell them back to our bank and Switzerland. Trading them for a merger of nestle and Coca-Cola for instance.
what happened to Budweiser after China bocked when it was not aloud to purchase General Motors. Car smars it was the large holding of pallidium China was after.
Okay Wall say China announces it intends to dump its treasury bonds. Who wins on Wall Street.? If the notes plummeted in worth. Then someone wins in short sales. Housing market crashed AIG lost but some made huge profits in the sceme. Is treasuries any different? We bet the fed loses a ton for instance.
We own the grain store. Stop the shipping of grain to China. Starve them to negotiate a better deal whether it works or not we will see but this what our president does to make a great deal. Read art of the deal best deal is made when you destroy any position your adversary has to say no at the table.
Savers win as rates go up, bond shorts win...there is always a winner.
Trump ran on weakening the dollar. A strong dollar pushed away foreign investment on our goods. By devaluation of us currency then catapulted equipment would be more competitive than kamatzo machines from japan was the analogy. Part of his campaign stump speeches. currency such as gold to shelter their cash. A machine in United Emirates would accept paper in exchange for gold while Brazil was in an inflationary period.
Fed has begun to raise rates and projects interest to be held to 3 percent from the existing 1 percent. If given Trump is telling what he will do and so far has at least attempted to do this what would you suggest to place any assets into for the short term. Say for a 3-6 month window.
I hope they halt almond purchases so that the almond growers in my fine state will stop bleeding the aquifers dry.
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