“If China (for one) ever stops buying U.S. Treasuries — what do you suppose will happen to the value of the U.S. dollar?”
It will collapse, and Chinese products will suddenly be far more expensive for US consumers, and the Chinese economy will tank. China knows that, so they won’t stop buying our bonds unless they are forced to. In fact, right now they are pushing in the opposite direction, doubling down on their weak yuan policies. I expect that, instead of cutting bond purchases outright, China will likely try to prod us constructively into more responsible fiscal policies by making threats to do so.
Good luck to them on that. Its never worked when conservatives tried it.