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A comment on US Administration announces 34% tariffs on China – 20% on EU. Parent comment

Re:US Administration announces 34% tariffs on China – 20% on EU by RachelF on Thursday April 03, 2025 @02:19AM (#43565469)
Foreign countries like Japan and China own around $1.8T in US bonds. These are valued in dollars, like stocks.
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Re:US Administration announces 34% tariffs on China – 20% on EU by nthingtohide on Thursday April 03, 2025 @03:38AM (#43566167)
Doesn't Europe and Japan have dollar swap lines with US? So ultimately it is US buying its own bonds through Japan to create an illusion that there exists enough external demand.
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Re:US Administration announces 34% tariffs on China – 20% on EU by nabla9 on Thursday April 03, 2025 @02:20AM (#43565478)
Yes. That's what I said "Devaluing dollar does not reduce debt measured in dollar"

The US would still have to pay the debt in Dollars. Devaluation affects currency exchange rates. Debt would be less valuable in Yen and Renminbi but just as expensive for the US government.

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