" To me, the really scary thing is that it could happen, in a blind panic, at any moment, and if the US keeps steadily going bankrupt, it probably will happen someday. " ~ Thomas Madden
"China and now even Canada, are issuing debt denominated in US dollars. The older issues have also lost on the foreign exchange. Carney in Canada has just…
" To me, the really scary thing is that it could happen, in a blind panic, at any moment, and if the US keeps steadily going bankrupt, it probably will happen someday. " ~ Thomas Madden
"China and now even Canada, are issuing debt denominated in US dollars. The older issues have also lost on the foreign exchange. Carney in Canada has just demonstrated his true lack of understanding of financial markets. He dumped US Treasuries but then issued Canadian debt denominated in dollars. As the C$ declines, he will lose on the return of the foreign exchange as well. Even the OECD report found that the costs of borrowing through dollar-denominated bonds had risen from around 4% in 2020 to more than 6% in 2024, rising to more than 8% for riskier, junk-rated economies nations."
" To me, the really scary thing is that it could happen, in a blind panic, at any moment, and if the US keeps steadily going bankrupt, it probably will happen someday. " ~ Thomas Madden
"China and now even Canada, are issuing debt denominated in US dollars. The older issues have also lost on the foreign exchange. Carney in Canada has just demonstrated his true lack of understanding of financial markets. He dumped US Treasuries but then issued Canadian debt denominated in dollars. As the C$ declines, he will lose on the return of the foreign exchange as well. Even the OECD report found that the costs of borrowing through dollar-denominated bonds had risen from around 4% in 2020 to more than 6% in 2024, rising to more than 8% for riskier, junk-rated economies nations."
https://www.armstrongeconomics.com/uncategorized/sovereign-debt-crisis-unfolding/
Which country do you think will fold first, Canada, or the US?
Is a bank run the cause of a currency collapse? If so, can some form of a CBDC be a solution? If so, would you be in favor of it?