Re:China Begins to Question Whether It’s Ready for a Trade War
by psergeant on Tuesday June 26, 2018 @11:55PM
(#17405656)
Interestingly you omitted the currency of that loan in your comment. Thinking on that should answer your question.
[ Parent
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Re:China Begins to Question Whether It’s Ready for a Trade War
by nerfhammer on Wednesday June 27, 2018 @01:14AM
(#17405923)
These bonds generally have a fixed term of up to 30 years, under what scenario would the US have to repay its bonds all at once, before they're due?
Re:China Begins to Question Whether It’s Ready for a Trade War
by ChuckMcM on Wednesday June 27, 2018 @01:21AM
(#17405954)
It wouldn't. The general threat is that China would sell these treasuries on the market and flood the supply. That would make it much harder for the US to sell new treasuries (which it does every quarter) and so the discount it would have to give would be higher (the bond yield would go up) and that would mean more expensive debt repayments in the future.
Re:China Begins to Question Whether It’s Ready for a Trade War
by nerfhammer on Wednesday June 27, 2018 @02:56PM
(#17410787)
Ok, that's more realistic