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Joined 3 years ago
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Cake day: July 4th, 2023

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  • OK, I feel like many people here don’t know what this means.

    The US sells bonds to people. These bonds are promises to pay them back more in a certain number of years.

    The EU can’t demand payment for all of that debt. What the EU CAN do, is selling the bonds it already owns, flooding the market. And not buying more themselves.

    This would mean, that selling more bonds would become expensive for the US. Potentially they won’t find enough buyers to fund their government.

    Canada already threatened that (or started to do this, I don’t remember) once already at the start of Trumps term. This might have been a factor for him backing of his invasion fantasies the first time.