If I go to a bank, and I get a loan, then the terms of that loan allow the bank to do that.
If I sell a bond, then I set the terms, and I say that you can’t do that. You buy the bond understanding the terms.
China owns treasury bonds, they don’t have the ability to “bind up the borrower”. They can sell their bonds at market prices, but they can’t say “this debt is worthless, pay us now”. That’s not how bonds work.
That's isn't what I am arguing. I'm arguing that a very large holder of bonds can potentially set the market price. If they move the market for the older bonds, they will move the market for new issues.
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It depends on how that debt is owned.
If I go to a bank, and I get a loan, then the terms of that loan allow the bank to do that.
If I sell a bond, then I set the terms, and I say that you can’t do that. You buy the bond understanding the terms.
China owns treasury bonds, they don’t have the ability to “bind up the borrower”. They can sell their bonds at market prices, but they can’t say “this debt is worthless, pay us now”. That’s not how bonds work.
That's isn't what I am arguing. I'm arguing that a very large holder of bonds can potentially set the market price. If they move the market for the older bonds, they will move the market for new issues.