• PostingInPublic@lemmy.world
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    1 day ago

    Nah, these balls can be lightly squeezed, not just cut off. They can be squeezed lightly for a longer time, making Americans uncomfortable for months, or once in a not so gentle way.

    The central banks can do that by selling bonds at a slughtly cheaper price than the US offers for their new bonds, forcing them to offer higher rates, making their debt more expensive.

    It’s the perfect instrument, if you’re willing to pay the price.