[delta7]

The world is dumping our Debt securities…now we know why Trump promoted Stable Coins….they are required to buy/ hold US Debt instruments.

The snake eating its own tail OR a genius move to find another source to buy our unprecedented Debt? …..we shall see how long it can last.

[delta7]

I will add it was a move that had to be made, and just in the nick of time…as Japan is the next one on the chopping block, maybe we will withstand their US debt dumping, maybe not?

Interesting times.

[Red Badger]

Buy back the debt with inflated dollars.

They do it every time....................

[pierrem15]

Ever since COVID, China has been selling Treasuries and other assets to cover its bad internal debts and subsidize employment.

[PGR88]

In the past, people in 3rd world countries could get US dollars only by permission of their local banks (ie. under central government control), or by smuggling them.

Now the average 3rd world citizen can have access to US dollars (or a close derivative) by having an account with a crypto-exchange, based anywhere in the world, and using their cellphone.

Tether is already a top-ten holder of US Treasuries, greater than most governments or investment funds.

So this is all a very interesting scheme to extend the reach of the US dollar and increase demand for US Treasuries.

So we can also expect continued, growing huge Fed.gov deficits.

[Rockingham]

So, where is China parking its foreign currency earnings? In non-interest bearing gold? In any event, China's economy and financial system are under serious stress.

China's financial regulators just bailed out major Hong Kong banks by putting their bad loans into workout and leaving the otherwise impaired banks with clean balance sheets. This is the best solution to a bad set of problems that continue to fester throughout the entire Chinese financial system.

Eventually, China will have to use their stock of foreign earnings to recapitalize their financial system. As a practical matter, that will take masses of dollars. Nothing else will do.

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[grumpygresh]

So Armstrong is lamenting China not wanting to buy US debt? Isn’t better not to be in debt to an adversary? You can find that advice in Proverbs.
I would think this reinforces the concept of increasing domestic energy, mining and manufacturing capacity as a means of enhancing national security and strengthening the US economy by encouraging investments in the US. All that economic activity should strengthen the dollar, US markets and improve US government balance sheet.

[Wuli]

They need the cash and are using it to buy more in the rising U.S. equities (stock) market, period. Reading more than that into it is oure innuendo trying to support themes not supported by facts.

[PeterPrinciple]

What will the US do when no one is willing to buy its debt?

---

The essence of a “bankruptcy” is realignment. Debt goes away, assets remain.

We witnessed a major world power go bankrupt in our lifetime.

The results of that were:

1) destruction of centralized corrupt govt

2) Movement of power back to the satellite nations

3) freedom from all the regulations and bureaucracy.

WE ARE IN THE PROCESS NOW, THANKS TO TRUMP’S LEADERSHIP.

[Vaduz]

A genius move to find another source to buy our unprecedented Debt?.

Agree China needs cash it’s war machine and expanding to other countries takes huge amounts of cash.

Trump is ahead of the game.