Debt Rattle April 7 2025

[aspnaz]

@WES Indeed, the USG has been pushing zero-coupon, 100 year bonds, on foreign governments, trying to force them to basically pay the US debt. Of course, nobody wants to take them, USG debt buyers want shorter and shorter durations as uncertainty grows. Who knows if the USA will even exist in 100 years, let alone whether they will care about paying 100 year old bonds, and given the uncertainty, 100 years seems like a piss take, but some will buy simply to avoid tariff, but they will be saying goodbye to their money, and they know it. Given the USG is agreement incapable, 100 years is a joke.

[aspnaz]

If they can get enough foreign governments to take the zero coupon bonds, then they do not need to care about the interest rate as their debt repayments will be deferred for 100 years. The tariff pressure is all part of this game, borrowing from the future in order to save on pain today. It is a nice idea, will only work on very small and weak countries, China won’t be doing it unless the USA pays such a huge price today that makes it worth their while, and that is unlikely politically.

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