haha
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I always find this assertion hard to understand. It may be correct, but I just can't see how. Say I am a Vietnamese factory owner. I ship my shirts, and Walmart pays me with dollars. It seems that I could join with others and buy ships, or oil storage depots, or natural gas fields with these dollars. Although someone would always be getting these dollars in these transactions, they do not have to go into long term US bonds. Perhaps very short term bonds, perhaps the heroin trade as working capital. True that the $$s would never be destroyed, but if the world truly lost confidence in them their value should approach zero.On the contrary. Foreign dollars mean US$ remitted abroad to pay for goods imported into the US. Those $$ have no place else to go so they are recycled back into US Treasuries.
If there were more eagerness to buy stuff, or even corporate stock than bonds, bonds should become relatively less expensive, and it should be harder to sell new issues.
Ha
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