The amount of Europeans who don’t understand how US treasury bonds work and are coping that they have leverage is hilarious. Lately ive seen Europoors and leafs say their countries should dump or sell the bonds to hurt the US for doing this or that so that the dollar will plummet in value and crash americas economy. They seem to be going on the assumption that bonds are like a stock you can buy from the US that can raise or lower in value depending on how many people buy them. Well no its not a stock or any sort of stake its a loan thats paid back with interest once the bond has matured. There is a difference between selling the bond and redeeming it once it has matured and no the bonds can’t be cashed out before maturity without accruing major financial penalties which basically ruins the whole point of having a bond. While bonds do certainly play a role in keeping the dollar strong and can have less buyers in the future it is not the US destroying leverage that some people think they are.
They're yuroPOORS, anon. Of course they don't know how financial things work.
> we’ll sell your bonds!!!…which means someone else will be buying…
bonding is about performance or laborread that as slavery
>>526104241selling bonds makes sense if you can get better profit with money you get selling it by investing it to something else like to gold or silver in same time bond gets maturedwhen lot of holders sell their bonds their price gets lower and most likely lower than buying a new bondto sell new bond country has to have higher interest what really means bonds are likely getting even more worthless in future probably making more people sell their bonds before it's uselessobviously jewropeans demanding USD bond holders to sell bonds to hurt US is stupid but not for OPs reason but simply because European banks has shitloads of US bonds
>>526104241you misunderstand what they mean, and you're also not considering what happens if they don't continue to buy US bonds
>>526104241>There is a difference between selling the bond and redeeming it once it has matured and no the bonds can’t be cashed out before maturity without accruing major financial penalties which basically ruins the whole point of having a bond.I don't think you can ever redeem the publicly tradable Treasury Bonds before they mature, you have to hold or sell. You can with the ones limited to individual US citizens like EE or I bonds, and the penalties on those are generally mild. That said, when selling a publicly tradable one it could be a profit or less depending on what the bond is currently trading at. All of this has been distorted by QE though.
Yeah it's like the "blue states will just withhold their taxes if DRUMF keeps doing (insert thing)" stunt they always pull. I think they honestly believe California collects all the federal income taxes and mails a check to DC or something.These are literally women mostly, shilling on 4chan. Of course their poorly educated drivel won't make much sense.
>>526104241My dude all that needs to be done to destroy USD is to stop using it for international trade.
>>526107049That wont happen as long as america controls the oil
Fiat currency runs on trust and trust is a currency you've been throwing away like drunk sailors lately.
>>526104241short term bonds are essentially soft pegged to the federal funds rate, long term bonds have more potential to crash our economy. Also the biggest thing isn't necessarily the bonds themselves on the secondary market, but their performance at treasury auctions. If no one wants to buy treasuries during the auction, the government can't raise debt without the Fed's intervention, which necessarily leads to larger inflation.
>>526104241The point of dumping bonds is to increase interest rates of the issuer and reduce the value of the bond which further increases interest rates since nobody is going to buy a devalued bond that isn’t yielding much.
>>526104241Well we can stop buying your bonds including rollover debt, that's about 25% of foreign buyers
