And China could dump it’s U.S. treasuries.
All that would do would prove how untrustworthy China is as a trading partner. And who would not be standing in line to buy them?
Besides that, I wonder that if it's found that China gives the Norks material assistance which facilitates their belligerence then could it be considered an act of war on the part of the Chinese which could be cause for the US to cancel their treasuries.
“And China could dump it’s U.S. treasuries.”
Only if there are buyers for them.
L
And the Fed simply buys those with funny money and hands China a rubbery check.