Americas Biggest Creditors Dump Treasuries in Warning to Trump

[TexasBushwhacker]

https://www.yahoo.com/finance/news/america-biggest-creditors-dump-treasuries-220001418.html

"In the age of Trump, America’s biggest foreign creditors are suddenly having second thoughts about financing the U.S. government.

In Japan, the largest holder of Treasuries, investors culled their stakes in December by the most in almost four years, the Ministry of Finance’s most recent figures show. What’s striking is the selling has persisted at a time when going abroad has rarely been so attractive. And it’s not just the Japanese. Across the world, foreigners are pulling back from U.S. debt like never before."

<snip>

"Nevertheless, any consistent drop-off in foreign demand could have lasting consequences on America’s ability to finance itself cheaply, particularly in light of Trump’s ambitious plans to boost infrastructure spending, cut taxes and put “America First.” The president has singled out Japan and China, the two biggest overseas creditors, as well as Germany, for devaluing their currencies to gain an unfair advantage in trade."

[progree]

1. I doubt it's a warning, they are just reasonably acting in their self-interest

After all, we have a ding-a-ling in charge who thinks he can just renegotiate our national debt. I'd be lightening up too on Treasuries if I had any.

A Trump proposal for national debt would send rates soaring, AP, 5/6/16

https://www.yahoo.com/news/trump-proposal-national-debt-send-184432030.html

In the event that the U.S. economy crashed, Donald Trump has floated a recovery plan based on his own experience with corporate bankruptcy: Pay America’s creditors less than full value on the U.S. Treasurys they hold.

Experts see it as a reckless idea that would send interest rates soaring, derail economic growth and undermine confidence in the world’s most trusted financial asset.

The presumptive Republican presidential nominee suggested in a phone interview Thursday with CNBC that he would stimulate growth through borrowing. If trouble arose, he added, he could get investors to accept reduced payments for their Treasury holdings.

Trump later clarified that comment to say he would offer to buy the bonds back at a discount from investors in hopes of refinancing them at lower rates. {clarified? a distinction without a difference -Progree}

“I would borrow, knowing that if the economy crashed, you could make a deal,” Trump told CNBC.

http://www.huffingtonpost.com/georges-ugeux/trump-already-notionally_b_12969910.html
https://www.yahoo.com/news/m/0556913b-c667-398f-a622-9bdd3b6e2cb6/trump-already-(notionally).html

The Committee for a Responsible Federal Budget, a bipartisan fiscal watchdog had estimated that under Hillary Clinton, the debt would reach 29 trillion in ten years against 39 trillion for Donald Trump

[progree]

2. President blamed his staff 4 not telling him $1 TRILLION on infrastructure would drain the treasury

http://www.democraticunderground.com/10028635276

Like Duh.

[burrowowl]

3. Well DUH!