Donald I, emperor of the world.

[Psamathe]

Re: Trump's BBB and the Massive Extra Borrowing
On thing that I can't understand is who is going to lend the US all this money or maybe how much interest are those lending going to need to make the loans?

US (MAGA) wanting to devalue the $ is widely known so loans will be taking that into account. Trump's record on reneging on deals, just not paying is well known and represents increased risk. US credit rating is maybe not perfect. Given the risks (dollar, inflation, default/renege) I'd be wondering if costs of borrowing might increase.

And will China be as keen as it mas in the past (given that it has been reducing its holdings on US Treasury bonds).

(nb claiming no expertise on US Government finances so open to being corrected).

Ian

 

[Pblakeney]

Re: Trump's BBB and the Massive Extra Borrowing
On thing that I can't understand is who is going to lend the US all this money or maybe how much interest are those lending going to need to make the loans?

US (MAGA) wanting to devalue the $ is widely known so loans will be taking that into account. Trump's record on reneging on deals, just not paying is well known and represents increased risk. US credit rating is maybe not perfect. Given the risks (dollar, inflation, default/renege) I'd be wondering if costs of borrowing might increase.

And will China be as keen as it mas in the past (given that it has been reducing its holdings on US Treasury bonds).

(nb claiming no expertise on US Government finances so open to being corrected).

Ian

They all just go to the magic money tree.
It is all either above me (likely) or a pyramid scheme.

 

[C R]

Meanwhile, TACO tits said to republicans that there are 3 things they shouldn't touch: medicare, medicaid and social security. This is either dementia or more worryingly, there are dark powers setting the agenda and Trump is just the idiot front man.

It is dementia and the idiot front. They aren't mutually exclusive.

 

[Pinno718]

Re: Trump's BBB and the Massive Extra Borrowing
On thing that I can't understand is who is going to lend the US all this money or maybe how much interest are those lending going to need to make the loans?

US (MAGA) wanting to devalue the $ is widely known so loans will be taking that into account. Trump's record on reneging on deals, just not paying is well known and represents increased risk. US credit rating is maybe not perfect. Given the risks (dollar, inflation, default/renege) I'd be wondering if costs of borrowing might increase.

And will China be as keen as it mas in the past (given that it has been reducing its holdings on US Treasury bonds).

(nb claiming no expertise on US Government finances so open to being corrected).

Ian

Well, there is inherent presumption in your point: if the billionaires and lawmakers keep their billions and wrestle power from the executive and the judiciary, it won't be them suffering from the consequences of this nor economic strife.

 

[icowden]

They all just go to the magic money tree.
It is all either above me (likely) or a pyramid scheme.

I read something once about the critical mass of lending. If you or I borrow £500,000 from the bank and fail to pay it back, we would end up losing any assets we had as the bank would want repayment.

If you can get to the position where you owe the banks more than a billion or so (can't remember what the amount was), there becomes a point where it is no longer in the banks interest to try and recall the loan because the loss of money would be more than the bank can bear - thus the bank continues to work with the fraudulent billionaire...

 

[Pinno718]

I read something once about the critical mass of lending. If you or I borrow £500,000 from the bank and fail to pay it back, we would end up losing any assets we had as the bank would want repayment.

If you can get to the position where you owe the banks more than a billion or so (can't remember what the amount was), there becomes a point where it is no longer in the banks interest to try and recall the loan because the loss of money would be more than the bank can bear - thus the bank continues to work with the fraudulent billionaire...

Well yes, if you owe the bank £100, they have you by the short and curliess but if you owe them £1m, they have to look after you.

 

[CXRAndy]

It was the women's response to Trump winning the presidential elections
Shave their heads, refuse to have sex.

This time it's the beta blokes

 

[Psamathe]

Well yes, if you owe the bank £100, they have you by the short and curliess but if you owe them £1m, they have to look after you.

Are there different considerations before vs after having lent the money?

Before making the loan considerations would be in relation to risk, income to offset the risk, assets securing the loan and longer term value of those assets, etc.

But once the loan has been made and once deals signed then the considerations become more in relation to protecting your investment or minimising losses.

eg why is anybody prepared to lend Thames Water more money when risk must be beyond ludicrous? Maybe as a last ditch attempt to rescue the even larger amounts already invested and disappearing down the toilet.

Ian

 

[CXRAndy]

View: https://x.com/iAnonPatriot/status/1940892731246891311?t=pHmysRExrMWChRahg3GWZw&s=19

 

[CXRAndy]

That's why US citizens voted for Trump


View: https://x.com/JeepguyTexas/status/1941090783802904722?t=MaYE_AlAZ1MQWkiXtFpSsg&s=19

 

[orraloon]

As read elsewhere, congratulations to USanians on their Independence Day. It's only taken them 249 years to get themselves a new king.