Just to be clear to everyone thinking #EU can blackmail #Trump dumping #US Debt:
You cannot blackmail a country that prints the worldβs #ReserveCurrency
If Europe threatens to dump #Treasuries, the U.S. says:
βCute. Weβll just print money, buy them ourselves, and your portfolio loses value.β
Dropping a few hundred billion into the market would barely blip yields. The #FederalReserve would simply buy whatever Europe dumped.
Thatβs the whole point of a central bank with an infinite balance sheet.
#USD #America #FED #debt #Bond
Just to be clear to everyone thinking #EU can blackmail #Trump dumping #US Debt:
You cannot blackmail a country that prints the worldβs #ReserveCurrency
If Europe threatens to dump #Treasuries, the U.S. says:
βCute. Weβll just print money, buy them ourselves, and your portfolio loses value.β
Dropping a few hundred billion into the market would barely blip yields. The #FederalReserve would simply buy whatever Europe dumped.
Thatβs the whole point of a central bank with an infinite balance sheet.
#USD #America #FED #debt #Bond