Dear non-USA world,
here's a reminder that you're holding over 8 trillion US$ in #treasury bonds, more than 30% of the #USA's debts.
If you'd all collectively liquidated those bonds you'd get back ~40 cents on the dollar (yes, a loss), but would instantly cripple the US economy. Furthermore, since the majority of the USA's GDP stems from circular transactions in the AI bubble, there's little chance for them to recover from such a blow in the forseeable future.
Just saying…
But with Trump shooting against China for all that time? Might be less impossible now.
But coordinating a meaningful number of other countries isn't going to happen.
- replies
- 1
- announces
- 0
- likes
- 0
@dat if China takes the plunge it'd start a bank – err – treasury run. Coordinated action would secure all debtors the lowest loss. In a treasury run situation, there's only a few "winners" and a lot of loosers. Technically the optimal strategy would be coordinated action, but Nash equilibria depend on "optimal" actors, so there's that.
Either way, the USA are in the most vulnerable position here.
And then there's the adjacent issue of the not-so-solid gold reserves at the Federal Reserve.