The Reign of Trump

[Scot Dutchy]

"Strong and vibrant"

FFS be realistic. Trumpcunt is not.

[Forty Two]

China owns America. Just a point.

It's a problem. It's why we need the actions Trump is talking about. That's a pro-Trump argument you just made.

[Forty Two]

"Strong and vibrant"

FFS be realistic. Trumpcunt is not.

Do you ever have anything other than snarky quips to add to a conversation? Seriously, dude. For someone as vacuous and vapid as you, you sure have a high opinion of yourself. Is that a Dutch trait?

[Jason]

But if China sells the debt they hold doesn't that mean the buyer(s) of that debt demand a higher interest rate? And doesn't a higher interest rate reduce the 'debt ceiling' the US operates under which could cripple or outright collapse the US economy as the interest on your debt alone meets or exceeds your tax revenues. I don't think China can sell your debt on to anyone else because it would necessitate the collapse of the US economy. I believe they're stuck holding it whether they like it or not. They don't have to lend any more of course but that could also lead to economic collapse in the US as it seems your government is dependent, at this point, on further loans to cover operating costs. It's what is known as the 'debt trap'.

[mistermack]

Nope. China buys US debt for two reasons. One to make money but the second, to prop up their biggest market. If that market stops being profitable for them, reason 2 goes out the window.

And where does all this assumption of US prosperity come from? It's bollocks.
Closing their trading links will push up inflation, and harm exports. It's not win win. It's win lose.
Win little, lose big.
And America's debt suddenly gets more and more expensive to service. And less and less attractive to hold.

[Forty Two]

But if China sells the debt they hold doesn't that mean the buyer(s) of that debt demand a higher interest rate?

No. The bond has a rate. The US isn't subject to interest rate hikes negotiated by China selling debt to some other country.

China owns about 6% of US debt. They could sell it all, and it wouldn't make much difference. To sell it, someone needs to buy it. It's US Treasury bond notes.

And doesn't a higher interest rate reduce the 'debt ceiling' the US operates under which could cripple or outright collapse the US economy as the interest on your debt alone meets or exceeds your tax revenues.

That's a huge problem with running up debt, which the Obama Admnistration did by getting us up over $20 trillion. But that has nothing to do with China or Japan selling their US Treasuries. It doesn't matter to us who holds the bonds. What matters is if nobody was willing to buy any new bonds

I don't think China can sell your debt on to anyone else because it would necessitate the collapse of the US economy. I believe they're stuck holding it whether they like it or not.

They've sold a lot of it. They increase and decrease their holdings often.

They don't have to lend anymore of course but that could also lead to economic collapse in the US as it seems your government is dependent, at this point, on further loans to cover operating costs. It's what is known as the 'debt trap'.

Sure, but that's one of the problems Trump has been saying he wants to fix. Hillary Clinton wasn't interested in that. No Democrat candidates in my memory have cared about the national debt. They tend to like deficit spending. The only exception was Bill Clinton, who actually caved to the Republican Congress' "contract with America" in the 1990s, and had the luck of the internet boom.

[Forty Two]

Nope. China buys US debt for two reasons. One to make money but the second, to prop up their biggest market. If that market stops being profitable for them, reason 2 goes out the window.

And where does all this assumption of US prosperity come from? It's bollocks.
Closing their trading links will push up inflation, and harm exports. It's not win win. It's win lose.
Win little, lose big.
And America's debt suddenly gets more and more expensive to service. And less and less attractive to hold.

Trump hasn't talked about "closing" trading links. He's talked about opening them. He is talking about working with Russia and China, not against them. The big talkers when it came to Russia, for example, were the Democrats, who have been beating a drum about Russia. Trump wants to have the US do business with them. Same with China. China has to be held to account for its currency manipulation and theft of intellectual property - but, beyond that, Trump wants to trade big with China.

[mistermack]

So he doesn't think that China is raping the US economy then?
Or maybe he likes being raped?

[Tero]

Fiscally sound and Trump. Does not compute. Bzzzzzz. Fail.

[Jason]

They don't have to lend anymore of course but that could also lead to economic collapse in the US as it seems your government is dependent, at this point, on further loans to cover operating costs. It's what is known as the 'debt trap'.

Sure, but that's one of the problems Trump has been saying he wants to fix. Hillary Clinton wasn't interested in that. No Democrat candidates in my memory have cared about the national debt. They tend to like deficit spending. The only exception was Bill Clinton, who actually caved to the Republican Congress' "contract with America" in the 1990s, and had the luck of the internet boom.

Has he updated his position regarding his ideas of 'renegotiation' and 'refinancing' that essentially involved driving the US economy to the brink of collapse in order to buy back existing bonds at a discount.. or.. something? It's here: http://www.politifact.com/truth-o-meter ... refinanci/

[Tero]

Finnish stand up guy Ismo explains the Trump debt concept. We are Ghengis Khan

[Jason]

It appears siccing his mob on trade union leaders is at the front of his new economic policy: http://www.msn.com/en-ca/news/politics/ ... spartanntp

Smash those unions, bring down those wages and benefits - they're unamerican!

[Tyrannical]

What's going to happen when China says no to buying more US debt?
If they see the US putting the shutters up, why should they pay the rent for America?

Lol
What's going to happen if the US writes off Chinese debt? Maybe Trump will think of a clever excuse, penalty price paid for stealing western technology and IP. Fact is China has much more in assets outside China than we have in China. I believe the technical term is called nationalization, and all Chinese owned assets outside of China vanish.
The Art of the Deal, China plays by Trump's rules or china looses trillions. And has trade cut off lol. China couldn't retaliate because they'd be in a civil war.

[Jason]

What's going to happen if the US writes off Chinese debt?

You can't just "write off" US bonds - they're like the holy grail of the global economy and the reason the US holds the position it does as economic leader of the world.

[Tyrannical]

It appears siccing his mob on trade union leaders is at the front of his new economic policy: http://www.msn.com/en-ca/news/politics/ ... spartanntp

Smash those unions, bring down those wages and benefits - they're unamerican!

It is!
Within a year every union leader will be replaced with a pro trump union leader. And they'll be well paid because trump will enact tariffs to ensure they are. The burger flippers of tomorrow will be college educated social justice warriors lol