Will the countries that dump treasuries suffer more when they have to buy them back? I understand them selling off the treasuries to prop up their own fiat though.
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Will the countries that dump treasuries suffer more when they have to buy them back? I understand them selling off the treasuries to prop up their own fiat though.
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I dont think they will suffer more in the sense of loss. Where this is a problem is in the having to sell to start. When a central bank needs to unload the UST to get USD for their commercial banks so repayments of loans can be made, that is a problem.
Yeah evidently the BoJ loaned US Treasuries to the commercial banks and they sold them to prop of the yen.
To be a fly on the wall during that conversation. LOL
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