[wahern]

> But then again, BBC and CNN, and social media agreed, thought China would dump $1+ trillion in US bonds for pennies on the dollar and lose out on the loan leveraging they get to "punish the US"...by bankrupting themselves? Which never happened anyways.

There's plenty of hyperbole out there, but hyperbole doesn't negate reality. China is buying fewer treasury bonds, and this is one reason why the bottom fell out of the market for purchasing U.S. treasury bonds, requiring Federal Reserve intervention. It's one, small reason, but it will become increasingly more important as Chinese purchases drop while U.S. deficits continue their upward climb.

The reason you know Trump isn't crazy like a fox is because his policies are inconsistent and erratic. Demanding your investment managers to buy high, sell low doesn't make you Warren Buffett. Starting a trade war with the expectation that the other guy will flinch before you doesn't make you a cunning strategist; it just makes you dangerous.

[corodra]

I dont know, maybe the baby bird needs to be pushed out of the nest too. It's a good way to quit relying on one large source for the bond market. That's inherently unsustainable. Every service provider knows your biggest customer is your riskiest one. If they leave, it hurts. Thus, speed that up in a controllable manner. A few broken eggs sure, but you still keep the hens and the hen house.

[wahern]

"Starve the beast" has been the Republican strategy for decades to kill entitlements. The thinking was that by refusing to raise enough revenue to cover spending, Congress would be politically forced to reduce spending. Of course, what happened and continues to happen is that revenues drop, spending stays the same or grows, and the gap is covered using increasing amounts of debt.

If you're suggesting that the pain of losing Chinese money will force the U.S. to reduce its deficits, that has manifestly not been the case for decades. For treasuries, instead what will happen is exactly what we've seen happen the past few weeks--something or someone will fill the gap before the whole house of cards collapses, which will sustain the status quo but ultimately put us on a more perilous path.

You can't bluff and cajole your way to smarter fiscal and industrial policy. Republicans have tried that and failed because it turns out you can't avoid making hard, considered decisions; nor avoid compromise. There's no avoiding the fundamental dynamics at play, which are complex and merciless. Entitlements exist for a reason. Trade with China exists for a reason. You can't address those things without addressing the underlying reasons they exist. Doubling and tripling down on a failed strategy with the world's worst bluffer isn't going to work any better.

[corodra]

First of, all politicians are greedy, lazy self interested assholes incapable of actually accomplishing anything of real substance of their own two hands. They just have different flavors of bullshit. So you pretending that just blame Republicans and the world is a better place, yea, ok. Its worked out so well for govs in history to blame another party and declare all politics should be based on ours. It's already a waste of an argument.

That and you put the cart before the horse. It's always been to cut spending first so rev wouldn't need to increase.