https://www.americanbondholdersfoundation.com/"
I'd forgotten about them until I read articles like this when Trump was in office. https://www.foxbusiness.com/markets/historic-chinese-bonds-trump-leverage-beijing
I’d forgotten about them until I read articles like this when Trump was in office.
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Tell It Right,
What I appreciated about the subject you raised, is very few people know about the debt repudiation that a variety of governments took after communist revolutions. Also, as a proponent of freedom, free enterprise, business efficiency, capitalism, property rights, etc, the Chinese need to make a payment on those bonds.
However, it will be a smaller payment because the Chinese can’t afford the economic pain on their population that a trillion + pay out would cause. On our side.....the creditor side, we don’t need any artificial *inflationary pressure at this time.(Markets and supply chains need time to adjust to the post Trump stupidity that is plaguing our nation.)
* The payout may not be inflationary, it depends on how much money the bond holding organizations receive & what they do with it. For instance, if they take pennies on the dollar from the Chinese, but the Chinese redeem the Treasury Department the majority. Then Treasury increases national debt reduction. That debt reduction would most likely be a counter to inflation.