SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : View from the Center and Left

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Sun Tzu who wrote (378041)7/23/2018 2:59:03 PM
From: ryanaka  Read Replies (2) of 543680
 
Nice! and short!

But wouldn't it be to USA's advantage to devalue USD, which will effectively reduce the debt they owe to their creditors (USB holders) as the debt owed is in terms of US dollar? This will also make China pay more USD to buy the same amount of US treasuries. At the same time, this will make US exports be cheaper in foreign markets.

Other countries use their trade surplus and buy USB. If the US treasuries become cheaper, it will make more difficult to export debt by USA, right? So, China's sells USB now, cause the treasury yield (and USD) to rise. Making the US treasuries cheaper should be China's tactic right now, which will also make US exports more expensive and less competitive abroad.

Maybe I am totally or partially wrong here because I'm an idiot in these kind of things.
I'm just trying to get some common sense feel about it.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext