China and Brazil have reached a deal to trade in their own currencies, ditching the US dollar as an intermediary
The deal will enable China, the top rival to US economic hegemony, and Brazil, the biggest economy in Latin America, to conduct their massive trade and financial transactions directly, exchanging yuan for reais and vice versa instead of going through the dollar.
:xicko:
Now the Belt and Road Initiative, please
I'm not sure if it's the same with global trade, but typically, yes, that's how bonds are paid back. The government takes your money and invests it themselves, or they use it to fund projects at home. Whether they make profit or get the money elsewhere, they're expected to pay back the investor the principal + the interest (which is usually low, but high enough to beat bank interests and somewhat keep up with inflation). Bonds are popular in order to protect the value of your money since it's relatively safer than stocks since it's the government that's paying you back. Although companies also hand out bonds too if they need funding. The typical saying I hear in investing is that if bonds aren't safe and the government can't guarantee payment back to you, then you have a lot more to worry about than bonds.