At this rate Japan, S. Korea, Taiwan, and Vietnam may decide it’s safer to deal with Red China. At least Red China is consistent. The same can’t be said about the US.
Longterm that is not a good strategy for those asian countries. They know it, and we know it, and they know that we know it.
US debt public (not at the Fed, which holds $6T) is $31T.
30% of that is foreign held, so $10T.
Japan holds $1.1T per the article. That is the largest foreign holder.
You can’t sell anything unless there is a buyer. But you can sell urgently and the buyer be less urgent and drive that price down (for Treasuries, if the price falls, the yield (interest rate) rises).
Japan has some clout in this, but frankly, the Fed could buy the $1.1T and hold the price up if they wanted to (and they have never been reluctant to want to). It would just mean their $6T holdings become $7T. The only real danger is further exposure of the manipulation of pieces of printed paper.
except that they are not all that keen for chinese dominance
Not true.
I think you have a point for short term but not long term. The countries you mention hate dealing with China because China screws them over. The US/Trump is looking at long term benefits. It’s a tricky situation.
People have forgotten what a trade war looks like. The remaining old guys over in OPEC are licking their lips if 4 weeks of tariffs on Chinese bullshit are causing this much damage to the world economy. I expect a problem in the gulf the week after a Ukraine-Russian cease fire.
I think not. These nations know what China is and what the United State is.
Nope. Zero chance. Japan, Korea, Taiwan, and Vietnam rely on us as a huge buyer nation. We prop up their industries with our huge consumption of their products. China buys very little and has been trying to encourage their own people to consume more of the products they make, not to start importing foreign goods.
You cannot replace someone to buy your goods with someone who only wants to sell you things. It’s simply not possible. Those in the media or foreign nations who insist these countries could replace the US with China are simply ignoring the actual situation and pushing nonsense. You can’t replace something with its opposite—and that’s not even mentioning how most of those nations rely on us to defend them from China.
And there’s nothing especially “inconsistent” with the normal back-and-forth of negotiations. Trump understands that other nations will try to get good deals for themselves too in the talks. It’s natural and expected. Thank God, Trump isn’t so weak as to start running for the hills as soon as he gets a little push back even when the US holds the better cards.