The End of Free-Market Capitalism and The U.S. Debt-for-Equity Swap
by VBL
Tuesday, Aug 19, 2025 - 8:32
The U.S. Search for Investors
"Domestically, it is simply nationalizing businesses in a corporatist mindset. It is a move towards state controlled capitalism, like China. And it may work. It may be necessary, even if only temporarily. But that is exactly what it is. There is nothing free-market or democratic about it.
Authored by GoldFix, ZH Edit
Contents
The Loss of Bond Market Attraction
Historical Precedent and the Postwar Model
The Imperative to Retain Capital
The Role of Foreign Direct Investment
The End of Free-Market Capitalism
Otherwise We “Adjust”
The Loss of Bond Market Attraction
If the United States can no longer attract sufficient foreign capital into its bond market, the ability to subsidize spending and investment comes under direct threat. Without new inflows, policymakers are left with limited choices. This Problem stated as an Either/Or proposal: