Where it can hurt us is if China dumps a large amount of their existing Treasury holdings and/or severely curtails future purchases.
Not many other countries are in a position to pick up the slack, even if they wanted to.
Result? Here comes QE4 here, and more global QE as well. Market reaction to further monetary easing is anyone’s guess.
And Janet can forget raising rates.
they already have. nobody is quite sure who the buyer was.