The problem is how will China and other countries get the USD to cover the debts. Do you think they will wait for the bond auctions or buy them off the open market?
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The problem is how will China and other countries get the USD to cover the debts. Do you think they will wait for the bond auctions or buy them off the open market?
Posted Using LeoFinance Beta
The ones that have it will have to sell some bonds. That is what China did. Those who do not will have to enter the forex market and swap their currency for USD.
If the native currency is dropping against the USD, that is where the problem enters. Businesses will have to generate more of their currency to get the same amount of USD to make the payments on the debt.
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