> Now, who exactly are these globalists? No one knows for sure, but Trump might be referring to foreign investors holding massive amounts of US Treasury bonds (bonds issued by the US government). Take China, for instance. The US buys more from China than the other way round, creating a trade deficit. This leaves China with excess US dollars, which it then recycles into US banks by buying Treasury bonds, essentially lending money back to America for safe returns.
This is ridiculous.
China, Japan, India, and everyone else buys treasury bills because it is better than holding dollars for foreign reserves.
Not only that crashing the stock market will benefit bond holders. As all the money would flow towards bond markets.
> Now, who exactly are these globalists? No one knows for sure, but Trump might be referring to foreign investors holding massive amounts of US Treasury bonds (bonds issued by the US government). Take China, for instance. The US buys more from China than the other way round, creating a trade deficit. This leaves China with excess US dollars, which it then recycles into US banks by buying Treasury bonds, essentially lending money back to America for safe returns.
This is ridiculous.
China, Japan, India, and everyone else buys treasury bills because it is better than holding dollars for foreign reserves.
Not only that crashing the stock market will benefit bond holders. As all the money would flow towards bond markets.
Which is what is happening.
I think the author mentions that first theory in order to implicitly reject it in favour of the second theory.
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