Posted by sotxbill on June 05, 2016 at 14:12:23 from (104.5.24.112):
In Reply to: US debt to Saudi posted by Geo-TH,In on June 05, 2016 at 06:35:08:
Again,,, people buy and sell bonds all the time... And if they are not matured, you have to sell them at a discount. If they are matured, you sell them at face value, as they are just like money. If you sell un-matured bonds, and try to dump too many, you end up having to sell them at a huge discount and a huge loss. All of our debt is/are in bonds, and notes with an interest rate and maturity date. And we have a good rating....
Also the value of the US dollar vrs other currency comes into play,, but it still just buying and selling on the bond market.
If the Saudi's dump... They LOOSE HUGHLY...
And since older debt has a higher interest rate than just issued debt due to the current interest rates world wide,, The US would and could just take advantage of the old debt being sold cheaply, buy those higher bonds back with money from newer bonds at a cheaper rate. Large companies are doing this this all the time buy calling in notes out there with a higher rate and replacing them with notes of lower rates. You can only do that when the interest rates are going down.. And yes the interest rates are at a historical low. It called retiring high interest debt with low interest debt... Like refinancing your house with a lower interest rate.
So.. yes sell the crapola out of those older (expensive bonds and notes... And let the USA lower its debt amount!! PLEEEEESSSSE, Pretty please.
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