Countries holding a third of USA debts can still survive, but the USA pension funds, hedge funds, banks and USA people will go back to the stone age. And the US$ will literally become banana notes overnight. That it did not do so when the US$ was decoupled from gold backing was that the world had no other alternative and no BRICS to counter.
Apart from the threat of writing off its debts, even a default to service its interest payments will bring disaster to the US$ hegemony. And if the USA debts keep piling up, that default is not that far away. The USA, like Japan, is now economically between a rock and a hard place. No solution is in sight.
And the problem is made more unpalatable now that BRICS has a new system in place to lead the world away from the SWIFT system and an agenda of de-dollarization taking hold more and more decisively.
Anonymous
11 comments:
Sinkieland hold about us240billion american debt which is about 35% of it own gdp. So if the american said they will not pay a single cent for those debt. Sinkieland will become sinkingland, all the elite will run road immediately. No wonder sinkingland have to listen to american, as it balls is really in the yankie hand.
When the big tree collapse, some monkeys cannot even know where to disperse to.
They assumed that they always are thinking years ahead. But they know the USA debt can never be repaid, and they are still sticking to that belief that it is still the safest bet.
I think their balls are stuck either between a rock or a hard place, so even knowing that it is untenable is of little use. When the balls are stuck like the Arabs and Marcos Jr, what is the alternative. None! Have to keep helping to flog a dead horse and hope it will run again. Now that is a far-fetched hope of utter hopelessness.
Well, what else can we expect from those who are still betting on India. Just imagine that while Air India is losing big money, SIA is still happily plugging the black hole, hoping to profit in the long run. They say that fools rush in where angels fear to tread. Even angels fear to tread is how serious the warning.
Interest payments on the US$40 trillion debt by the USA are well over a trillion dollars, bigger than the GDP of the top 20 countries of all the 193 countries in the world. More than 170 countries have a GDP well below a trillion, including you know who.
The irony is that having the privilege of unlimited money printing creates an unfairness for the rest of the world and it is time to remove that privilege once and for all. The rest of the world can only have one more chance at doing that through BRICS de-dollarization agenda. That is the only lifeline available going forward. Think about it.
Please note that USA can never default on its debt because the USA can always print endless supply of money to buy back its own debt -- a.k.a. debasement
Oh yeah, let us hope this is true. Print and buy its own debt? It becomes banana notes faster.
Banana notes to buy back bananas maybe.
If it is just a matter or printing, Scott Bessent would not be threatening and almost begging people to buy USA debts. In the process having to raise interest rates to lure buyers but unsuccessfully actually. Now even cutting interest rates and don't know wtf he is doing. Which stupid moron is going to buy USA debt with such a move? Oops, I think the stupid Brits will still do it.
Otherwise, how did the Brits collapse into ignominy.
US bond may pay 3-4% rate. Minus 10% depreciation on the dollar, net minus 6-7% . Some clowns still think this is good investment.
For entertainment value I think the bond story is one of a blockbuster. For investment value, it is a con job. But conning must be easy, otherwise how did Trump get away with six bankruptcies?
Sorry should be just smaller than the top 20 countries of the world but above more than 170 countries..
My sincere apologies. Anon 11.22
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