Igor wrote:Many countries have reserves in Dollars. What USD will do if these countries will start to lose trust in Dollar and will start to sell Treasuries, will it be possible that USA will not be able to pay for the debt? If so USA will be forced to 'print' a lot of additional Dollars to pay for debt, price of Dollar will go down and other countries will also sell it. This looks like financial catastrophe when no one will trust Dollar anymore. Have USA a defense of this variant?
If Country A decides to sell the treasuries then SOMEONE must be willing to buy them (the US does not have to buy back it's treasuries unless it wants to). So all that happens is that Country B buys them. So in reality some country ALWAYS holds US treasuries and the US does not have to print money to pay back the debt.
It's possible for the dollar to go down if Country A sells treasuries to Country B for less than it bought them for just as it's possible for the dollar to go up if Country A sells treasuries to Country B for more than it bought them for.
If all countries tried to sell at the same time (or China attempted to dump it's vast holdings) then the value could go really low. In that case Trump suggested that the US should then buy them at the really low value because you are buying them for WAY less than they cost (ie US sold them initially to China for $100 and bought them back for $1 then China loses $99, not the US). This is why when you hear claims that countries are going to dump treasuries it's nonsense because those countries would lose, not the US.
Igor wrote:In the same time our media tell that there is a variant that Trump will win among voters but can lose among electors. Is it a horror story or it has a real base?
This is 100% true. It happened in the 2000 Election when Bush won but Gore had more votes.
It happens because if you win a state you get 100% of the electoral votes. So imagine a country where there are only 3 states each having 10 votes (10 million population). In State 1 and State 2 you win with 51% of the votes but in State 3 you lose with only 40% of the votes. You still win the election (20-10) but you get fewer votes than the loser who had 4% + 49% + 60%.
KGB