US Treasuries to 100-year bonds, is widely described by economists, foreign officials, and analysts as blackmail, extortion, or bullying tactics in the context of international relations and trade…

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Threatening trade and investment partners with tariffs and the withdrawal of a security umbrella to force them into a debt restructuring, such as converting US Treasuries to 100-year bonds, is widely described by economists, foreign officials, and analysts as blackmail, extortion, or bullying tactics in the context of international relations and trade.

In general terms, blackmail or extortion involves using threats of potential harm (e.g., economic penalties, removal of military protection) to obtain something of value or force a party into an agreement it would not otherwise accept. The “Mar-a-Lago Accord” is a proposed economic framework, discussed by key Trump economic advisors like Stephen Miran, that outlines this exact mechanism of using security guarantees and market access as bargaining chips to achieve US economic policy goals.

Key points regarding the “blackmailing” aspect:

Coercive Diplomacy: The use of tariffs and security threats as leverage is a form of coercive diplomacy, where one nation uses its power to influence the actions of another.
Market Perception: The proposal, and actions seen as aligned with it, have led to market volatility and concerns among investors and international partners about the reliability of the US financial system and its commitments.
International Reaction: Foreign officials have explicitly used terms like “blackmail” and “bullying tactics” to describe the US administration’s use of such threats in trade negotiations.
Undermining Trust: Critics argue this approach would undermine trust in the US and the dollar as the global reserve currency, potentially leading countries to seek alternatives for trade and security.

While the term “blackmail” has specific legal definitions in domestic law, in the realm of international relations, the use of disproportionate, non-negotiable threats to force compliance is colloquially and politically referred to as blackmail or extortion by those who oppose such tactics.

What are some potential consequences of a country using its security umbrella as leverage in economic policy?

What other ways have governments been accused of using economic coercion?

Mar-a-Lago Accord – Wikipedia