Yet another gold bug publication talking its book.
Baloney, juan is higher now than 5 years ago, the bonds they hold a good bonds at higher interest rates, US will buy back all bonds, CCP is talking about 20% of their holds, ain’t squat. Just CCP prop!
Be a damn shame if all those Chinese Generals lost their mansions and luxury cars.
America is the #1 purchaser in the world. We are a country of consumers and we buy a ton of products. The communist Chinese may be evil but they’re not stupid. Kill the dollar and Americans stop consuming. No consuming and Chinese businesses get hit hard. If they wanted to crash our economy, they should have done it during the height of the American COVID shutdown.
For 20 years I’ve been hearing gold bugs promise that metals were about to go through the roof and it still hasn’t happened. But they sure love panic buyers that resemble preppers.
LOL -- China's debt problem is much larger than ours. Plus this 'plan' will leave China with essentially no export markets due to a surging Yuan and falling dollar. China's productive capacity is far in excess of domestic demand, despite the CCP's endless loans to bankrupt enterprises to maintain employment.
Here's a more likely scenario: the CCP takes a gamble on a short war to justify the internal reforms necessary for its own economy, hoping (at best) for the easy acquisition of Taiwan and at worst a stalemate that allows the CCP to utterly destroy any internal opposition and make the needed chnages to its internal markets.
Trump, if pushed far enough, could use executive authority to render the bonds worthless. If he announced even the possibility of such the bonds would become unsalable as buyers would be concerned they could be stuck holding the bag.
This action, if taken, would render the rest of the outstanding bonds a little bit more trustworthy...this due to the slight lessening of US debt.
The US Dollar strengthens during a global recession, just like it did during the last one. Gold bugs need to understand basic economics when it comes to the world's debt-based money supply.
China is a factory nation - nothing more. Its economy will crash and burn if we stop buying their junk. Their only hope would be to increase sales to the other BRIC nations. Russia will have no interest, and India hates them. Brazil is ticked about the Chinese virus.
China is in a world of hurt - not the United States, or the US Dollar.
Stupid article.
If China did that, China would have no influence over US policy. The US could completely be independent upon China.
China will have to sell at an additional discount. It’s bonds are already out there.
A pro China puff piece.
It’s rather simple choice at this time.
Who do you trust.
We’re doomed! Doomed, I tell ya!
China could also stop all trade, in and out, and cause a lot of problems - but they would take the brunt of it....
First, China only holds about $1 trillion of our $28 trillion debt. Second, if they sell somebody else buys it. So who cares?
Total economic B.S.
In re:
“if China sells all of its US bonds in an extreme case, like a military conflict”. When an important holder begins to liquidate, others are sure to follow.”
NONSENSE.
1. Everyone knows and will know such an action by China will be totally political, not financial or economic.”
2, The reactions of others will NOT be to follow the Chinese in dumping U.S. treasuries. It will be the opposite with no shortage of buyers for them.
We have been getting the scare articles about Russia, or China or someone destroying the standing of the U.S. currency and somehow damaging the U.S. either currency moves or by dumping U.S. debt.
I think the folks that pay for these articles to be written, every time, must be either gold mine owners, gold traders or holders of a lot of gold.
With all the flooding in the Yangtze River valley, home to much of China’s manufacturing and agriculture, China might need to sell assets in order to buy food, in order to avoid civil unrest.