The borrower is slave to the lender

Investment Analysis Clubs Macro Economic Trends and Risks
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Like many of its citizens, the USA is a debt slave:

The rich rule over the poor, and the borrower is slave to the lender
(Proverbs 22.7)

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Like many of its citizens, the United Kingdom is a debt slave, let’s hope they do not default again.

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But we didn’t start a fight with our ‘bankers’ :slight_smile:

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But we didn’t default. :grin:

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If you owe $100 to a bank you are the slave of the bank. If you owe $100 million to a bank the bank is a slave to you.

The U.S. owes $784.3 billion to China. Now, China can hurt the U.S. by refusing to buy any more Treasuries. But the U.S. can hurt China by taxing the interest paid to China. If China tries to sell its Treasuries it will upset the market which can’t absorb this huge volume.

It doesn’t make sense for both sides to hurt each other.

By the way, in Biblical times (Bronze Age and early Iron Age) a lender could literally enslave a borrower who defaulted.

Wendy

https://ticdata.treasury.gov/resource-center/data-chart-center/tic/Documents/slt_table5.html

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Only four times recently:

https://thehill.com/opinion/finance/575722-the-us-has-never-defaulted-on-its-debt-except-the-four-times-it-did/

Possibly a fifth time coming up soon!

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Unfortunately, this still goes on in some parts of the world:

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We like to use the term taught to us by the English. “There has never been a formal declaration of Default on the United States Debt.”

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Doesn’t have to be formal and there was a declaration by Nixon

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That was quite an interesting article, but had essentially nothing about debt.

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Al Jazeera has been running some interesting stories about the US - China standoff:

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I don’t China wants to devalue the dollar, do they? A strong dollar means imports (to America) are cheaper, and exports are more expensive. That’s the opposite of what Trump wants. That puts Trump in a weaker negotiating position.

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The YTers:
China Observer
China Update
Nanalyze
Joe Blogs

Are all saying some form of:
China malls n shops are empty;
Chinese "shopping convention in Guangcho (Sp?) is empty of Western buyers, especially US;
Chinese taxis are sitting idle;
Shipping containers are stacking up in port PRE-loading;
Chinese manufacturers are saying they have no orders;
“Many” small factories have closed;

Ie, lots of “Chinese are not employed”.

IF true, how long can/will Xi and/or CCP hold out?

Basically, this is siege mentality.

Quelle horrible!

:elephant:
ralph

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Hi ralph

I’ve been reading stories like this for quite a while. I keep waiting for something to happen but China just seems to keep rolling along.

Puzzling

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Dear Divitas

No one is going to win here. You are misreading the situation.

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Dear Divitas,

Liz Truss just did start a fight with the bond market. Same dif.

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Same here Divitas.

And, same with Russia.

There’s a disconnect between what’s reported for one part of the economy and that reported for the “normal citizens”.

I just keep watching.

:disguised_face:
ralph

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Is because the main stream media is reporting what our government administration wish were true rather than what is true? In effect, government propaganda to keep popular support behind the government’s efforts to bring down China & Russia?

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IDK.
I try to watch YTs that are less US centric, but it’s difficult to ascertain the biases.

I also watch:
Peter Zeihan,
Lei’s Real Talk
Inside Russia
Joe Blogs
BBC
The Guardian

Peter Boyle seems “fair and balanced” to me.

These two are VC billionaire investors:
I like the All In Podcast. They seem to have balanced discussions without too vicious attacks.
I particularly like Chamath n David Friedberg (Sp).

And Big2 Pod.

I welcome comments that help me better see the biases of these YT channels.

:slightly_smiling_face:
ralph