For those who like to speculate...
When the current Chinese government came to power, they disclaimed any responsibility for any bonds issued by the previous ones.
At today's interest rates, the bonds are now theoretically worth many billions of dollars, but sell on eBay as novelty items.
People have been buying these up for years and attempting to force the Chinese government to honor them.
It appears these voices, previously thought of as out of touch with reality, are about to get a strong New voice as the U.S. Administration has ordered its agencies to join the call for China to honor them.
Many old Chinese bonds are works of art, well worth their current prices on eBay, but if this long shot comes in, a $1,000 buy now could be life changing. At worst, you reseller on eBay.
Quote: GWAEthat is crazy. So basically they sold what we have as savings bonds and then said nevermind and kept all the money? Geeeeez
People in the US are going to get paid on the debt they hold with worthless paper in the very near future. We're going to have to build a crying wall on the Capitol lawn.
Quote: GWAEthat is crazy. So basically they sold what we have as savings bonds and then said nevermind and kept all the money? Geeeeez
Very common thing when a new government takes over. A reason why USA government debt is prized, we have never defaulted.
We have inflated the debt away and remonetized, but no default.
Quote: MaxPenPeople in the US are going to get paid on the debt they hold with worthless paper in the very near future. We're going to have to build a crying wall on the Capitol lawn.
I say print enough to pay off the national debt, take the deflation and start over.
This has been done hundreds of times.Quote: DRichI say print enough to pay off the national debt, take the deflation and start over.
- inflation
- devaluation
- bankruptcy
- regime change
-
To think one sovereign country will pay 70-year-old debts from a detested old regime is so delusional that it deserves the financial punishment of buying the old crappy bonds.
Quote: DRichI say print enough to pay off the national debt, take the deflation and start over.
Most of the U.S. debt, or at least a very sizeable chunk of it is owed to ourselves. How would you pay off the Social Security trust fund?
Quote: billryanMost of the U.S. debt, or at least a very sizeable chunk of it is owed to ourselves. How would you pay off the Social Security trust fund?
With a printing press.
Quote: DRichWith a printing press.
Sounds as valuable as pre-Nazi Deutsche marks... back in 1933
Quote: darkozSounds as valuable as pre-Nazi Deutsche marks... back in 1933
This is what some of us have been warning about for years now. I am amazed at how many very intelligent people do not grasp what happens when you try to just print money.
The next 50 years will be very key. It will take that long to pay all the big pension obligations off. As we come out of that either all value in money will collapse and start over, maybe with blockchain, or lower obligations with a smaller population will allow it to be paid off. Perhaps perpetuities will be issued. Treasury is already taking 50 year bonds. A perpetuity would just solve the rolling over of 30 year Treasuries but lock in the low rates of today. Then buy them back as they hit the market.
I see collapse. But I will be dead so what me worry?
Quote: billryanThis is akin to someone expecting the U.S. government to be responsible for Confederate war bonds. In fact, some experts think the current administrations stance may open up an opportunity for those bond holders to sue it. Imagine if holders of Confederate bonds end up getting paid while reparations get pushed down the road.
Actually, it might be a good thing to have and hold a confederate bond. As a collectors item, it might be worth something to someone.
Although it is still legal US currency, my $500 bill is worth a lot more than $500 on Ebay.
Quote: AZDuffmanVery common thing when a new government takes over. A reason why USA government debt is prized, we have never defaulted.
We have inflated the debt away and remonetized, but no default.
That is true, but it cannot last forever.
Quote: LovecompsActually, it might be a good thing to have and hold a confederate bond. As a collectors item, it might be worth something to someone.
Although it is still legal US currency, my $500 bill is worth a lot more than $500 on Ebay.
It cost more than $500 to the buyer, but I've seen some sell for less than $550. Confederate bonds sell for about $10-15 at auction, and maybe $40 at a shop catering to tourists. They are interesting pieces of history, but most were printed on rag paper and stored in barns or used as insulation as being utterly useless until the 1960s. My Uncle lived in semi-rural Georgia for a few years and would bring up Civil War stuff as American boys celebrated the Blue and the Grey.
I imagine some high grade stuff goes for good money but the run of the mill specimens have more supply than demand.
Quote: billryanIt cost more than $500 to the buyer, but I've seen some sell for less than $550. Confederate bonds sell for about $10-15 at auction, and maybe $40 at a shop catering to tourists. They are interesting pieces of history, but most were printed on rag paper and stored in barns or used as insulation as being utterly useless until the 1960s. My Uncle lived in semi-rural Georgia for a few years and would bring up Civil War stuff as American boys celebrated the Blue and the Grey.
I imagine some high grade stuff goes for good money but the run of the mill specimens have more supply than demand.
I just went onto EBay, just out of curiosity. Discontinued $500 bills were selling between $1100-1700, depending on their condition
Quote: LovecompsI just went onto EBay, just out of curiosity. Discontinued $500 bills were selling between $1100-1700, depending on their condition
eBay pro tip
Hit advanced next to the search bar and check the box to only show sold auctions. Those are the real prices.
