The Finance 202: Trump officials spook economists with talk of skipping debt payments to China
The Finance 202: Trump officials spook economists with talk of skipping debt payments to China
By Tory Newmyer at the Washington Post
May 1
https://www.washingtonpost.com/news/powerpost/paloma/the-finance-202/2020/05/01/the-finance-202-trump-officials-spook-economists-with-talk-of-skipping-debt-payments-to-china/5eab486c88e0fa594778bf5f/?utm_campaign=wp_the_finance_202&utm_medium=email&utm_source=newsletter&utm_source=reddit.com&wpisrc=nl_finance202
with Brent D. Griffiths
"SNIP.....
As the Trump administration mulls retaliating against the Chinese government for mishandling the coronavirus pandemic, there's one option in the mix that's sending shock waves through the ranks of economists and bond market investors.
Administration officials have talked about having the United States “cancel part of its debt obligations to China, two people with knowledge of internal conversations said,” per Jeff Stein, Carol D. Leonnig, Josh Dawsey and Gary Shih.
The results of such a move, debt experts agree, would range from awful to unthinkable.
“In economic terms, this is worse than telling people to drink bleach for what ails them,” Peterson Institute for International Economics President Adam Posen tells me in an email.
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