Would the US be forced to sell gold or buy gold if China stopped buying US treasuries?
Rockford asked:
Or would they be forced to increase interest rates instead?
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Or would they be forced to increase interest rates instead?
March 17th, 2009 at 6:00 pm
The US dollar is “fiat money” with no gold underpinning it anyway, so the answer to your question is “no”…
But China is hardly likely to stop buying US Treasuries, the return is more reliable and higher than they can safely earn using any other instrument…
March 20th, 2009 at 5:38 pm
If China won’t buy our junk bonds (ie. US Treasury bonds) then the fed will just print more money (leading to high inflation). Inflation will lead to higher interest rates, sending the prices of all bonds down. So, China loses either way. Of course, so do we.
March 20th, 2009 at 9:16 pm
China is sort of in a bind. They don’t buy or worthless paper then we don’t buy their worthless junk. See! We need each other.
March 24th, 2009 at 3:19 am
Rockford:
The U S want bankrupt in 1933. Owners of the
Federal Reserve, [not a part of the US gov't]
siphoned off all US gold and silver reserves
as repayment for the worthless, FEDERAL
RESERVES NOTES, posing as “dollars,”
the the Fed printed out of thin air, and then
loaned it to the Treasury, at interest.
There is no gold. Fort Knox is an empty memory.