I have said for MANY years that Wal-Mart will be a major factor in the collapse of the Chinese economy. Virtually everything sold to Wal-Mart and other major retailers is sold at a loss because the manufacturers are subsidized by the Chinese government. That can’t go on forever.
As for the U.S. debt the Chinese holds, they will have to discount it significantly if they ever decide to sell it in large numbers.
Pretty amazing math there, everything is sold at a loss and they hold trillions of our debt.
Yes. But dumping treasuries drives up in interest rates on new issues. THAT is what takes the system down—here in the US.
Spot on.