alt Hacker NewsForeign countries like Japan and China own around $1.8T in US bonds. These are valued in dollars, like stocks.
Replies
nthingtohide • 04/03/2025
Doesn't Europe and Japan have dollar swap lines with US? So ultimately it is US buying its own bonds through Japan to create an illusion that there exists enough external demand.
Yes. That's what I said "Devaluing dollar does not reduce debt measured in dollar"
The US would still have to pay the debt in Dollars. Devaluation affects currency exchange rates. Debt would be less valuable in Yen and Renminbi but just as expensive for the US government.