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1   TrumpingTits   ignore (3)   2018 Jul 22, 11:10pm     ↓ dislike (0)   quote   flag      

Who said anything about stopping global trade?

We just won't be propping it up anymore. The rest of the world...specifically nations that depend on exports for their prosperity (US is not one of them by a long shot)...that has an interest can, if they want.
2   Heraclitusstudent   ignore (2)   2018 Jul 23, 11:34am     ↓ dislike (0)   quote   flag      

Dunno... some rats are squealing pretty loud:
Trump’s Damage to International Trade Will Take Years to Repair
https://www.bloomberg.com/news/articles/2018-07-19/trump-s-damage-to-international-trade-will-take-years-to-repair
3   MisterLefty   ignore (0)   2018 Aug 2, 9:31am     ↓ dislike (0)   quote   flag      

This story is so poorly written.

"Households, businesses and governments borrow on the assumption that they will service their debts either by paying the principal and interest or by rolling over the debts into new loans." You can't exactly equate sovereign debt with consumer and most business debt. Sovereigns can print. And for certain well-connected businesses, the Fed can gobble up their debt, e.g., Wall Street banks.

"But to service these debts requires rising incomes.." Left out the above. The Fed can buy it up, toxic or not.
4   Heraclitusstudent   ignore (2)   2018 Aug 2, 9:44am     ↓ dislike (0)   quote   flag      

MisterLefty says
Left out the above. The Fed can buy it up, toxic or not.

The feds can't buy $247 Trillions of debts.
There is a limit to what the feds can do without creating a lot of other problems.
5   MisterLefty   ignore (0)   2018 Aug 2, 9:49am     ↓ dislike (0)   quote   flag      

Heraclitusstudent says
The feds can't buy $247 Trillions of debts.
Why would they want to? That's global debt. Other sovereigns could do the same, except those using the euro as Greece learned. No longer sovereign.

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