- cross-posted to:
- economics@lemmy.world
- economics@lemmy.ml
- politics@lemmy.world
- cross-posted to:
- economics@lemmy.world
- economics@lemmy.ml
- politics@lemmy.world
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Ha yes, tell it to the press where the bond holders can see it before hand too just to be sure your economy will get fucked extra hard. Imaging having an idea so bad that talking about it is itself a bad idea.
These are all a bunch of shell games that everyone is going to see right through and dump their Treasury bonds, or call them in. America will immediately go to shit.
Fine. Whatever.
The US still prices its gold reserves at $42.22 an ounce.
If revalued to the market price of around $2,900, it could create nearly $900 billion in new equity overnight.
Wouldn’t this crash the gold price?
Maybe in the short term, but BRICS countries are starting to accumulate gold as they dedollarize, so I expect the price of gold will keep climbing in the long term.
Yes. Although what are they going to do? Sell it? It’s an accounting trick
What does this mean?
The US would try to force foreign creditors holding long-term Treasury notes to swap them for 100-year, non-tradeable zero-coupon bonds. These bonds wouldn’t pay interest and would only be recoupable upon maturity. The plan could potentially reduce interest payments on the federal debt, but it could also make debt more expensive for the US. The move aims to weaken the US dollar, which is likely to increase inflation and interest rates.
This sounds like lipstick on a debt default.
American exceptionalism in a nutshell.
