American Economics Thread

azretonov

Junior Member
Registered Member
perhaps the question should have been directed to Trump :p , well he will become NOBODY in a couple of days anyway
Another interesting topic arises quietly: "Who will take the long-term US debts this time?"
The Biden administration's reflexes over the so-called Indo-Pacific region will be shaped around the solution of that question.
 

ansy1968

Brigadier
Registered Member
Another interesting topic arises quietly: "Who will take the long-term US debts this time?"
The Biden administration's reflexes over the so-called Indo-Pacific region will be shaped around the solution of that question.
@azretonov

A very good question, my take China will not buy anymore since she will use that income in more investment domestically for its DUAL CIRCULATION Strategy, now certain country like Luxemburg and Belgium is a heavy buyer of US debt notes. It puzzle me that a non surplus country had the money to invest in US gov't notes?:confused:
 

hashtagpls

Senior Member
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@azretonov

A very good question, my take China will not buy anymore since she will use that income in more investment domestically for its DUAL CIRCULATION Strategy, now certain country like Luxemburg and Belgium is a heavy buyer of US debt notes. It puzzle me that a non surplus country had the money to invest in US gov't notes?:confused:
So the US plan is to force tax havens into investing into US Treasuries or else face US anti money laundering charges like what happened with obama and the swiss banks?
 

BlackWindMnt

Captain
Registered Member
So the US plan is to force tax havens into investing into US Treasuries or else face US anti money laundering charges like what happened with obama and the swiss banks?
Its not forcing, its asking friendly for them to donate. This way the US can uphold western supremacy, and regime changing clowns can store their money in those countries.
 

ansy1968

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So the US plan is to force tax havens into investing into US Treasuries or else face US anti money laundering charges like what happened with obama and the swiss banks?
@hashtagpls

Or a repurchase thru a hedge fund or a US subsidiary? like what happen in the US repo market? Now all eyes is on Japan and Saudi Arabia if they will purchase more US treasury notes as the market expect China will lessen or not purchase anymore.
 
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hashtagpls

Senior Member
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Its not forcing, its asking friendly for them to donate. This way the US can uphold western supremacy, and regime changing clowns can store their money in those countries.
Not even American hedge funds are investing in US Treasuries when Chinese bonds yield higher returns with the prospect of even more growth.
White supremacy can only go so far and the Europeans weren't as committed to white supremacy as much as say the Australians when it came to signing trade and investment deals with China.
@hashtagpls

Or a repurchase thru a hedge fund or a US subsidiary? like what happen in the US repo market? Now all eyes is on Japan and Saudi Arabia if they will purchase more US treasury notes as the market expect China will lessen or not purchase anymore.
They will invest a token amount, no doubt but every Treasury bought is more a bribe than an investment.
 

ansy1968

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Registered Member
Not even American hedge funds are investing in US Treasuries when Chinese bonds yield higher returns with the prospect of even more growth.
White supremacy can only go so far and the Europeans weren't as committed to white supremacy as much as say the Australians when it came to signing trade and investment deals with China.

They will invest a token amount, no doubt but every Treasury bought is more a bribe than an investment.
@hashtagpls

My prognosis is that the US federal reserve is the likely buyer of the US debt thru a subsidiary to make the purchase look legit. They intervene like what they did in the US REPO market.
 

kentchang

Junior Member
Registered Member
@azretonov

A very good question, my take China will not buy anymore since she will use that income in more investment domestically for its DUAL CIRCULATION Strategy, now certain country like Luxemburg and Belgium is a heavy buyer of US debt notes. It puzzle me that a non surplus country had the money to invest in US gov't notes?:confused:
It has long been speculated that Benelux UST purchases originated from China.

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ansy1968

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It has long been speculated that Benelux UST purchases originated from China.

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@kentchang

thanks for the info bro, but what I read is the reverse, I try to google and look for it asap but can't find it anymore. the caveat is that China UST holdings had been lessen by 50 billion USD and the buyer like you said is from the Benelux country.

A sample below
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Dec 15, 2020 — China and Japan, the two largest non-U.S. holders of Treasuries, ... Belgium's holdings grew by $21 billion to $239.6 billion, while those of ... “We saw very large sellers and large buyers, which partly helps explain why rates rose from their ... U.S. Treasury selling was the norm though in six of the last eight ...
 
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azretonov

Junior Member
Registered Member
But this time, the debts are considerably enormous and the FED cannot possibly take the larger portion of it. Without the domestic incentives, and, with the lack of major investors, they cannot present the collateral necessary to float. Late November, Ray Dalio, an investor with 35 years of experience in the Asian markets, had roughly mentioned the lack of interest from the domestic actors.

If the Biden administration is determined to follow the Trump administration's Asia policies, especially the ones concerning China and Taiwan, I don't see a comfortable solution for the inevitable debt crisis. Japan cannot do much on its' own as their growth rate was far from being competitive, even before the pandemic...
 
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