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Providing For The Public Good
JD Vance and Marco Rubio -- it's probably more accurate to say Marco Rubio and JD Vance -- successfu
If “The dollar, the bank reminded market participants, is a global public good.”
Then “If the term-out is into special century bonds as suggested by Poszar, then the funding pressure on the U.S. taxpayer for financing global security is significantly alleviated. The U.S. Treasury can effectively buy duration back from the market and replace that borrowing with century bonds sold to the foreign official sector.
Such a Mar-a-Lago Accord gives form to a 21st Century version of a multilateral currency agreement. President Trump will want foreigners to help pay for the security zone provided by the United States. A reduction in the value of the dollar helps create manufacturing jobs in America and reallocates aggregate demand from the rest of the world to the U.S. The term-out of reserve debt helps prevent financial market volatility and the economic damage that would ensue. Multiple goals are accomplished with one agreement.”
Yeah, tell Zoltan a forced term-out foisted upon some creditors but not others is a selective default.
Guy’s so smart he’s a dumbass.
Also, nobody in their right mind’s going to trust Trump to provide for any sort of collective security in exchange for that term-out. He’s a grifter, and he’s also a coward. That’s the worst possible combination of character traits for this imaginary “accord.”
Finally, those factory jobs ain’t comin’ back. Period.
IIRC, and there is decreasing evidence anyone should have any faith in that, didn’t you discuss century bonds when they started to reappear, both sovereign and corporate? Many wondered why the US wasn’t taking advantage of low LT rates by joining in, and I think you said there wouldn’t be adequate demand, not even close.
Interesting in theory. But ask yourself this – is you were a froeign holder of US treasury debt,.would you ever buy US paper again? And it would have to be lightening fast to prevent existing offshore holders from selling before the mandatorey exchange. Even then, I’d wager our friends on the street would figure out swaps to get offshore holders out, for a modest price, of course.
And then there’s that little issue of whether the US military will acytually show up when you need them, say in eight years….
Everything happening via Trump & Cronies is so wrong. They are destroying world order, they have no clue how it works and is held together. The one place you could attack world order on a grand scale is destroying the US’s role in maintaining and safeguarding. Who’s playing/running Trump? Hard to believe he’s concocted this up on his own. Could it possibly be a confederacy of just one dope?
One dope and his legion of subalterns.
Trump is a puppet and has been controlled/manipulated by the Kremlin since at least the 80’s, but probably farther back. Trump’s mentor Roy Cohn was a KGB asset as well. Trump’s true agency is minimal.