[Jonty30]

It nationalizes the debt, which would allow the feds to just cancel it, if they had to.

[major-pelham]

Buy it back cheap and reduce our debt total.

[detective]

“China, Russia and Brazil sold off U.S. Treasury bonds as they tried to soften the blow of the global economic slowdown. They each sold off at least $1 billion in U.S. Treasury bonds in March.

In all, central banks sold a net $17 billion. Sales had hit a record $57 billion in January.

So far this year, the global bank debt dump has reached $123 billion.”

Are Obama and his conspirators planning to destroy the economy on the way out?

[fhayek]

So central banks are selling. It is not clear, from my reading, who is buying. Hedge funds buying at a discount?

[Redwood71]

Just raise the price of food. That ought to get their attention.

red

[Intolerant in NJ]

Treasuries are considered one of the safest assets in the world - not when rates are likely to be rising in the near future....

[Ken H]

The 10-year Treasury is yielding 1.85%. Somebody is sure buying.

[proxy_user]

If they are selling, then someone must be buying. If they were selling into the market at a discount, then interest rates would be going up. But in fact, interest rates are very low, and have been pretty steady over the past three months.

Now let’s look at the theory that the Fed is simply creating money and buying the bonds in at a discount. If the US dollar were used only in the US, then this would cause inflation to rise. However, since the US dollar is a global reserve currency, then there might be little effect. We would print dollars and hand them to Saudi Arabia. They would buy food from Europe in dollars, and Europe would turn around and buy oil from Saudi Arabia in dollars.

Of course, in theory, the chickens should come home to roost, since the US dollar is only valuable as a world reserve currency because it can be used to buy goods and services in the US. But if foreigners holding dollars started to buy goods and services from the US, then our economy would be stimulated by the additional business. There might be some inflation, but that would be accompanied by a business boom.

[napscoordinator]

I find 1978 to be interesting. It seems 2016 might be our 1980.

[exit82]

And let’s not forget the efforts of the Chinese to replace the dollar as the international reserve currency of choice.

A collapse of the dollar, and an announcement by China that their yuan is backed by more gold than anyone realized they even had, would be as devastating to our economy as a war.

The blithering idiots in DC are either morons or complicit-—and maybe both.

[bert]

some body bought the bonds that were sold.

The move away from safety was not panic but the need to raise cash. the liquidity was tied up in the US Treasury bonds

sale of bonds among third parties has no real effect on the USA