The U.S. issues Treasuries because the law requires it. Creating USD is as simple as typing numbers into a computer—banks do it every day. I am using EXTREME examples to make a point. In theory (not that I’m suggesting it), the U.S. could pass a law to stop selling Treasuries entirely and never sell another treasury again. Then we can just simply hit the delete key at the fed to erase China's savings accounts/treasuries. Anddddd it’s gone. That means we have China by the balls. China has savings accounts/treasuries at the FED. We have 100% control of the money. Read this: Foreign countries buy U.S. Treasuries for four main reasons: After selling goods/services to the U.S., they receive USD and park it in Treasuries—essentially a super-safe savings account at the Fed. Treasuries are considered the world's safest investment. To manage and manipulate exchange rates. Because the USD is the global reserve currency and you need it to buy oil.
I will repeat...I'm not explaining why the United States sell debt (Treasury Securities) to other countries. Further, my list is ONLY a partial list (1/4) because I didn't want to take the time to copy the entire list...it had weird formats that did not copy/paste to well. Regardless, I'm explaining that the United States does sell debt to other countries and it's the reason why Trump is ranked #7 on the list of U.S. Presidential Administration for doing such and Trump's economists said he did such to balance the Federal budget. Re-worded differently - The United States is dependent upon selling its debt to other countries in false hope it will help to balance the U.S. federal budget while we understand we need to maintain a strong creditworthiness. Most U.S. Presidents do it but the national debt continues to grow from one U.S. President to the next U.S. President. Simply, selling debt to other countries does not work in balancing the Federal budget...reason why I displayed a list of U.S. Presidents going back beyond our great-grandparents. Also, I'm saying that the United States has a robust campaign to sell its Treasuries to other countries in comparison to those same countries "asking to buy the debt" (more of it) because of the safety and stability of the USD. Without going into too much details...two friends of my family here in Canada are buyers/sellers of U.S. Treasury Securities at their institutional trading firms. They've been selling (not buying) since Trump started his tariff war. In contrast, they're been buying more European bonds and other countries are doing the same as a safer investment. Simply, if countries are less willing to buy U.S. Treasury Securities because of Trump's tariff policy...Moody see's the securities as increasing in risk. We're fucked, as in will be fucked by the end of the federal fiscal year, if those countries decide for whatever reason to stop trusting the U.S. creditworthiness...some will stop buying U.S. debt via Treasury Securities. A U.S. Debt Credit Rating Downgrade would mean - “…an elevated risk of a fiscal crisis - that is, a situation in which investors lose confidence in the U.S. government’s ability to service and repay its debt, causing interest rates to increase abruptly, inflation to spiral upward, or other disruptions to occur.” Other economists disagree with the philosophy of selling debt to other countries as a tool to balance the U.S. national debt. Someone else in another thread called those economists...commies (e.g. notagain) as if ignoring all President administrations do it. As stated earlier, most U.S. Presidents administrations (the government under their term as President) do it but some do it a lot more while pretending they're not doing it all as if they have nothing to do with Federal Budget. Trump more than other U.S. Presidents will claim victory when things go well with the Federal Budget/National Debt but then blames (has been so far here in 2025) the prior administration when things go bad. For example, Consumer Confidence ticks up...Trump announces he's doing a good job and America is going int the right direction. Yet, when the bottom drops out of the Consumer Confidence and it sets multi-year lows...Trump blames the prior administration. https://www.cnn.com/2025/03/18/economy/us-trump-blame-biden-economic-data/index.html --------- Donald Trump Built a National Debt So Big (Even Before the Pandemic) That It’ll Weigh Down the Economy for Years The “King of Debt” promised to reduce the national debt — then his tax cuts made it surge. Add in the pandemic, and he oversaw the third-biggest deficit increase of any president. One of President Donald Trump’s lesser known but profoundly damaging legacies will be the explosive rise in the national debt that occurred on his watch. The financial burden that he’s inflicted on our government will wreak havoc for decades, saddling our kids and grandkids with debt. The national debt has risen by almost $7.8 trillion during Trump’s time in office. That’s nearly twice as much as what Americans owe on student loans, car loans, credit cards and every other type of debt other than mortgages, combined, according to data from the Federal Reserve Bank of New York. It amounts to about $23,500 in new federal debt for every person in the country... https://www.propublica.org/article/national-debt-trump --------- Trump owns that $7 trillion dollar debt increase in his first term after he was given a damn good economy although riddled with debt to other countries like other U.S. Presidents have done. Yet, I find it odd that Trump continues to blame the prior administration here in his 2nd term while saying his national debt was due to Covid Pandemic and then ignoring the prior administration also was stuck with Covid Pandemic...more so than Trump. My point, after September 2025...Trump administration owns everything. No more blame game. If the economy is doing good under whatever federal budget...he gets the credit and will gladly take it...announce his achievements to the American people. FYI - Trump has tried to downplay the pending suffering but he now admits there will be suffering for Americans. By the way, the United States invading another democratic country who has shown NO military aggression would cause global chaos never seen before in our lifetime...markets crashing would just be the start. Yet, Europe and Asia Pacific partners will come to Canada's defense as a NATO partner along with a downgrade by Moody about the U.S. creditworthiness...destroying the U.S. ability to sell debt as Treasury Securities to other countries. Again...the we're fucked statement. As stated, it's hypothetical and will never happen because Congress will quickly act to remove the U.S. President from office any way it can to protect Americans because America did not vote for that type of bullshit. Many voted for Trump because they wanted someone to be tougher on immigration problems and to bring down the cost of living...nothing else. Our founding fathers feared that an efficient government would centralize powers and become tyrannical — what they saw George III doing. Surely, you can at least answer the question what does the acronym D.O.G.E. stand for??? Don't worry, it's a rhetorical question...we all know the answer...DOGE is a contradiction to what the founding fathers expected from America. Can Trump turn it around by the end of the year before all hell breaks loose ??? Maybe but I'm not going to hold my breadth but I will use my resources and network to stay ahead of the pending landslide to prevent being swept over the cliff while trying to profit from the chaos that Trump creates just like my two buddies at one of Canada's largest institutional trading firms. P.S. U.S. analysts on Bloomberg are talking more about buying European defense stocks as a safe haven investment due to European defense budgets could go up to 3% to 3.5% of GDP. This is the first time I've seen such discussions on Bloomberg. Further, I will be re-evaluating American defense stocks as part of my dividends from my investments due to Trump's trolling threats of invading (if necessary...his own words) other Democratic countries who've shown no military aggression towards the United States. Trump's wannabe dictator illusion and not understanding that Congress would never approve such an invasion when +50 members of Congress are dual citizens along with other's who've served in the military...giving them a different perspective about War with a border country that the civilian population shares a strong cultural connection. https://www.barrons.com/articles/defense-stocks-europe-lockheed-northrop-2d5222bf https://seekingalpha.com/article/4767871-why-american-defense-stocks-are-ultimate-value-play wrbtrader