Why are many of the World banks and investors selling their USA Treasury Bonds?

justfred

Electoral Member
Dec 26, 2004
229
38
28
Drumheller
We are hearing that China, Japan and many other countries and banks are selling off USA bonds. Could it be that these countries are seeing that the USA is not safe place to invest money in? With the USA always operating deficits, are they just a PONZI scheme, acting like a government? Has the USA just hit the debt wall?
 
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justfred

Electoral Member
Dec 26, 2004
229
38
28
Drumheller
I thing what is happening is that the other countries are placing a run on the USA federal bank, knowing that their business plan is falling apart..
 

justfred

Electoral Member
Dec 26, 2004
229
38
28
Drumheller
Does the USA Treasury department realize that at some point in time they have to get other investors to buy their bonds, likely at a higher rate so that they can pay to investors to invest. Paying a higher interest rate may not work as the governments have to show that they can repay the bonds, without doing the PONZI program. Has USA hit the debt wall?
 

Tecumsehsbones

Hall of Fame Member
Mar 18, 2013
55,803
7,177
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Washington DC
Does the USA Treasury department realize that at some point in time they have to get other investors to buy their bonds, likely at a higher rate so that they can pay to investors to invest. Paying a higher interest rate may not work as the governments have to show that they can repay the bonds, without doing the PONZI program. Has USA hit the debt wall?
That's not DoT's mandate.