Nah, these balls can be lightly squeezed, not just cut off. They can be squeezed lightly for a longer time, making Americans uncomfortable for months, or once in a not so gentle way.
The central banks can do that by selling bonds at a slughtly cheaper price than the US offers for their new bonds, forcing them to offer higher rates, making their debt more expensive.
It’s the perfect instrument, if you’re willing to pay the price.
Because that is MAD. Literally. Economic mutually-assured destruction.
Who had “WW3 being started over a bounced check”?
Nah, these balls can be lightly squeezed, not just cut off. They can be squeezed lightly for a longer time, making Americans uncomfortable for months, or once in a not so gentle way.
The central banks can do that by selling bonds at a slughtly cheaper price than the US offers for their new bonds, forcing them to offer higher rates, making their debt more expensive.
It’s the perfect instrument, if you’re willing to pay the price.
I asked my old bank about this once, and they threatened to call the police. Fuckin’ shaved and everything.