I previously thought the US governmental system had many advantages. I no longer think this : Elections and governmental corrections take too long. If only the entire world didn’t get harmed by the votes of 77 million Americans.
Heather Cox Richardson ---"Trump’s niece, psychologist Mary Trump, posted: 'The Democrats just flipped a state house seat in the district where Donald committed voter fraud by casting his ballot illegally by mail.” Details, details Donnie. Jared's deals with MoreBS &BB NOT gonna go as Commander Bonespurs fantacizes‼️
Countries holding American debt should begin, slowly, to sell off their holdings. Not rapidly, just slowly, to demonstrate to the US that to continue on its present path, will be economic suicide. Once the US realizes its vulnerability (if it is even capable of that) and begins to act in a responsible manner, the sell off can stop. If not, so be it, maybe we need a new sheriff in town.
As I've suggested previously, the U.S. is technically insolvent. The U.S. cannot generate sufficient revenue to pay its expenses, so it borrows against its only collateral which is its reputation. When it does its best to tarnish that, folks recall their loans. Increasing rate will amplify the "greed vs fear" response for a while. The road to bankruptcy is paved with bad decisions. One of them was allowing the wealth of the nation to end up in the hands of billionaires. (as a bean-counter I have a very narrow perspective, I'm told!)
You’re not wrong on the dependence on borrowing Jim... I’d call it less ‘insolvent’ and more ‘confidence-funded’… and that only works while trust holds.
I previously thought the US governmental system had many advantages. I no longer think this : Elections and governmental corrections take too long. If only the entire world didn’t get harmed by the votes of 77 million Americans.
It’s messy, no doubt... but the danger isn’t slow systems… it’s when trust in them breaks.
Heather Cox Richardson ---"Trump’s niece, psychologist Mary Trump, posted: 'The Democrats just flipped a state house seat in the district where Donald committed voter fraud by casting his ballot illegally by mail.” Details, details Donnie. Jared's deals with MoreBS &BB NOT gonna go as Commander Bonespurs fantacizes‼️
That’s a lot of noise Eddie… I stick to what actually moves money and outcomes.
Yet another confession by agent orange.
Countries holding American debt should begin, slowly, to sell off their holdings. Not rapidly, just slowly, to demonstrate to the US that to continue on its present path, will be economic suicide. Once the US realizes its vulnerability (if it is even capable of that) and begins to act in a responsible manner, the sell off can stop. If not, so be it, maybe we need a new sheriff in town.
That kind of move cuts both ways... it pressures the U.S., but it also rattles the entire global system.
Thanks, Fred, for clarifying it.
They don’t even need to sell, just stop buying any new debt. That alone would be a huge problem for this administration.
Even that’s a slow squeeze... but when demand fades, borrowing just gets more expensive… and that’s where it bites.
They could use this as their ability to control what is going on. That is leverage they should use.
It is leverage... but using it too hard risks breaking the system everyone’s tied into.
As I've suggested previously, the U.S. is technically insolvent. The U.S. cannot generate sufficient revenue to pay its expenses, so it borrows against its only collateral which is its reputation. When it does its best to tarnish that, folks recall their loans. Increasing rate will amplify the "greed vs fear" response for a while. The road to bankruptcy is paved with bad decisions. One of them was allowing the wealth of the nation to end up in the hands of billionaires. (as a bean-counter I have a very narrow perspective, I'm told!)
You’re not wrong on the dependence on borrowing Jim... I’d call it less ‘insolvent’ and more ‘confidence-funded’… and that only works while trust holds.
Fred — strong point on credibility, but this isn’t panic, it’s friction.
The Court stepping in is the system working, not breaking.
The real issue isn’t $134bn — it’s policy volatility creeping into pricing.
Investors won’t flee; they’ll adjust. Slowly, then structurally.
That’s how credibility erodes — not in shocks, but in accumulation.
Fair point Hans... the system is working… but when volatility starts getting priced in, that’s where credibility quietly erodes.
And again nothing will happen
Maybe not immediately… but these things tend to build quietly before they show up all at once.
https://youtu.be/Z5QLbnfFWg0