As trade war intensifies and the global economy falls into depression, investors will liquidate everything and invest in the only safe asset: US treasurys. All other currencies will be dumped and value pumped into USD.
You are holding USD, right?
As trade war intensifies and the global economy falls into depression...
and invest in the only safe asset: US treasurys
treasurys
Check bond yields.
we want to a trade surplus!
you're manipulating your currency! it's too high!
also buy these treasuries to keep the dollar strong
I am holding Yuan.
it got devalued in half earlier
US bonds will hold up better than anything else. What are the alternatives? Everything else is dumping even worse. There are no better option.
i got devalued in half earlier
gold
invest in the only safe asset: US treasurys
Uhhh wrong RETARD! It's gold. Always has been, always will be.
Gold has poor liquidity and will require taking a 10% cut when you sell. For the short term you'll lose less by holding USD.
if its a lot it could be digital gold(not bitcoin)
But much of the demand for government bonds comes from companies and governments globally reinvesting their earned dollars. If we are no longer buying things and no longer become the preferred currency for trade then these companies and countries will stop buying our bonds.
WRONG midwit
All nations already dumping dollar.
Imports will shrink = less US$ for foreigners to invest
That’s why gold is going up and will now go to $10000+
Literal non zero chance that Trump wakes up and decides for whatever reason to not pay back bond debts.
Gold has poor liquidity and will require taking a 10% cut when you sell
It can be sold at spot to literally any coin shop in the US. Are you not an American?
Dumping it for what? Again, what is the alternative?
No, the US will pay the bonds. But if they don't like paying interest on bonds, the easiest solution there is to stop selling them.
now this is a high IQ post
most on this board dont have an even basic comprehension of the financial system and the role of us treasuries as a hedge and benchmark rate
BECAUSE BANKRUPTCY IS PATRIOTIC OK??!?? REMEMBER WHEN WE GAVE IT TO THE REDS AND WENT BANKRUPT SEVERAL TIMES IN A ROW BEGGING THE FROGS TO BAIL US OUT WITH GOLD COINS FROM THEIR SHIPS, THEN HALF OF US FROZE TO DEATH?? GOD THAT WAS SO PATRIOTIC AND IT WAS ALL SO THAT WE COULD DECLARE BANKRUPTCY AT THE COMPLETE OPPOSITE END OF HISTORY AT THE ABSOLUTE HEIGHT OF OUR POWER, CAUSE PAYING DEBTS AT ALL IS JUST TOTALLY FUCKING POINTLESS LIKE DONALD TRUMP SAYS PAY THE DEBT ON THE BUILDING I BUILT?? SURE THING JEW HERES MY MONEY BLEEGHHHH
PAY THE DEBT IN MY COUNTRY? IM THE PRESIDENT WHAT DO YOU MEAN DEBT? WE HAVE DEBT? LETS DEFAULT ON IT
sure we have the money every year to pay it
SILENCE KIKE! WE ARE MAKING ISRAEL GREAT AGAIN BY NOT PAYING THE JEWS DONT YOU UNDERSTANDN!!!
in post
Dumping it for what? Again, what is the alternative?
Gold
Foreign Central banks already been loading up (3000 MT last 3 years)and it’s just beginning
Gold has poor liquidity and will require taking a 10% cut when you sell
False and wrong
Gold is the most liquid real money. Also even retail seller only pays 1.5% less than spot if sell to dealer and if they sell it privately they easily get spot and spot+
gold cannot possibly replace the role of USD nor US treasuries
a quick google estimate has the total amount of gold in the entire world set at $7.5 trillion with an estimated daily trading volume of $162 billion. This includes ETFs and OTC transactions
now consider the market for US treasuries sitting at $28.6 trillion with a daily trading volume of $1.05 trillion
this isn't even getting into the USD role as a reserve currency
Short DOGE with 100x margin.
Bonds collapsing bro..
Bonds collapsing = Banks collapse
Fed will step in with QE
so every time a hedge fund wants to deploy capital they will take a 1.5% haircut on their $10 billion?? Only to take another one when they exit their position in 2 weeks and convert their money back into gold??
Or will they find a private dealer that has the liquidity to deal with hundreds of millions being moved daily??
this is only for a single fund too
gold in the entire world set at $7.5 trillion
Wrong current $19 trillion at $3k gold
Gold price will soon go $10K+ maybe $20K+
Why are foreign central banks loading up on gold?
treasuries will not collapse because there is no reasonable alternative, this is the topic of debate in this thread
Fed will step in with QE
agreed if it gets bad enough they will be the buyer of last resort
either way the liquidity is not close to enough be it 7.5 trillion or 19 trillion
complain about fake paper money all you want but the entire world is built on the foundations of it
Actually $20.6 trillion =current gold value at $3k gold
go look at bond yields, seriously
im dcaing into bitcoin and gold, this entire clusterfuck strengthens bitcoin's narrative IMO
treasuries will not collapse because there is no reasonable alternative
We will see . I say it’s starting to happen right now
buy the currency with the most volatile president?
thats not a smart move,
It has never been a bad bet to bet the president will change in 4 years.
Anon, BTC is dumping. The current cycle is over and we're in its bear phase for the next 2 years. It's literally the worst time to buy in.
there is no reasonable alternative
That is the conventional wisdom, but the US currently has a fucking retard at the helm who doesn't even understand trade deficits.
Trump has also said retarded shit like he'd be willing to default on the debt and give bondholders half. That does not inspire confidence. US Treasuries are a bet on the stability and fiscal solvency of the United States.
i'm dcaing all the way to the bottom, although my bids are light for now and will get heavier the more we dump
The USA going full retard and effectively ending the USD strengthens the narrative for Bitcoin and weakens the price, that is an extremely good buying opportunity.
but you have to hold something
the alternative is to just hold cash. But then you run into the same problems holding USD as you do holding US treasuries
to argue against my own point I *could* see RMB or RMB denoted bonds being used as an alternative. In this case being a known currency manipulator could end up being a benefit. But does China have the productivity base or power to support a worldwide reserve currency status?? It still seems an incredibly long way away
Trump could completely destroy America in 4 years with a complicit congress and senate.
Literally nobody wants to hold Chinese currency, not even the Chinese themselves. That's a suggestion by people who have no idea what they're talking about.
The senate has already shown some pushback against the tariffs. If it gets bad congress will restrict Trump's tariff-setting powers, during the midterms if not earlier.
agreed, Im just playing devils advocate talking about a theoretical world where the USD has collapsed and Switzerland is buying saudi oil with RMB
Bond yields are going back down. USD wins, baby.
just hold usdt retard