54 sats \ 0 replies \ @halalmoney 30 Apr \ on: Who Would Buy These Bonds? econ
‘One solution to the dollar’s exorbitant strength would be for the US to issue far more debt. The US is the only country in the world that can buy everything it needs in its own currency. It has no risk of FX crisis, and the only serious risk of sovereign default comes from its own politicians. So it could simply swamp the world with US Treasuries. This would drive down the dollar exchange rate, benefiting both US exporters and struggling businesses in developing countries. It would also fuel domestic inflation, which the Fed could be hard-pressed to contain - for economics nerds, this is “unpleasant monetary arithmetic” (UMA).’
https://coppolacomment.substack.com/p/trade-lunacy-is-back