no one in their right mind wants to lend money to a criminally corrupt, bankrupt government ....
Some time ago, the Vice President of the CCP’s Central Bank said (several times, actually) how it was a losing proposition for Communist China to lend the USA government money (buy our bonds) when the USA government depreciates the real purchasing value of our currency far faster than compensated for by the interest on the bonds.
Lend 1 billion, get back 1.05 billion YES... But that 1.05 billion will, when finally received, only actually purchase 0.6 or 0.7 Billion of merchandise, material, products, services.
So Bejing suffers two losses. First, it is losing today...not getting, buying things it wants or needs today. Deferred investment in their own country.
Second, when China finally gets their bond money back it will only buy them LESS goods and services than when they lent the funds in the first place.
If there’s anything the Communist Chinese bankers understand, and understand well, it is how capitalist free markets function.
We are just one failed Bond Auction away from disaster....................
This is why alI borrowed a large sum of money for my business in 2021 when I was anticipating a steep rise in interest rates. I front-loaded a bunch of capital expenditures and kept some funds in reserve for future expenses.
A government run by criminals, for criminals.
We’re broke.
Sure, we got good cash flow, but we’re broke.
We can right the balance sheet if we sell California.
5.56mm
Newsflash!!!!!
They’re always getting either harder or easier to sell.
The fed does not control the long end of the yield curve.
We’re $200,000,000,000 trillion in debt/unfunded obligations-
and folks-moistly American citizens are still willing to lend their hard earned money to the govt for 30yrs at 4.74% at the moment.
If Putin could borrow at 4% instead of 16%, Russia borrowing at rates less than us would be posted here constantly. He is paying more than junk bonds. China has an A+ rating which is numerous levels below our AA+-never posted here in a headline one time.
Yet Putin is a genius and China will be over taking the world.
America’s Bonds Are Getting Harder to Sell
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Not to the Fed they aren’t.
Uncle Pamela
Auntie Pam
Uncle Pam
Uncle Susan B.