Lock this commie traitor up!
Use it and it’s gone
In theory, Beijing could trigger a panic in bond markets by dumping some of the $1.1 trillion in US Treasuries that it owns.
There isn’t a big secondary market to purchase anything significant.
Besides, it’s only $1 Trillion...
China has 1.4 billion people,I unload crap from China everyday,China ain’t gonna do squat.
I think that would be like shooting themselves in the foot, trying to take revenge on us.
I think they are smarter than that, and realize that the only real solution is to negotiate and come to an agreement with us.
At least I hope so.
It’s not a weapon. It’s a way to earn some interest while keeping the value of the yuan down to maintain the competitiveness of Chinese exports. Because to sell those dollars would spike the value of the yuan.
if you owe the bank $1000 and you can’t pay, you’re in trouble.
If you owe the bank $10 million dollars and you can’t pay, the bank is in trouble.
We owe the Chinese a lot of money. They own a lot of property here. We could nationalize all of it.
In a full-scale trade war, China would revert back to what it was before Nixon decided to open trade talks with them, and the U.S. would still be the most powerful economy in the world.
IOW, I doubt China wants to commit suicide.
Perhaps the past Presidents, who allowed all these countries to trample on us, should apologize to the American people?
I won’t hold my breath. Trump is doing yeoman’s work in trying to right the Good Ship America!
We could wave our hands and make the entire $1T into zero. Simply declare all Chinese-held bonds to be non-redeemable moving forward. We’d take some damage but they’d take a LOT more.
Similarly, they could nuke their own cities so that the US would suffer from the fallout. Similarly likely, as well.
We simply declare all debt to a hostile regime to be invalid.
They will likely do this before the 2020 election.
They are buying Gold — the best and smart thing to do.
Oh, was talking about this Julie chick? I believe I was.
They don’t really have to devalue their currency - or not do it very steeply. They can subsidize their domestic producers to reduce costs to cover some or all of the financial impact of tariffs.
They only get ONE shot to use it. And when/IF they do, it will destroy their economy, which is already showing signs of trouble. I say, let’s see what ya got.
It would be a desperate move by China. China would lose considerable value by dumping the bonds, and for the right price, there would be plenty of buyers.
Might be a short term problem, maybe for a few months, but a long term benefit for the U.S. and the investors buying the heavily discounted bonds.
Which is why Congress shouldn’t spend, spend, spend and raise the debt ceiling willy nilly. We seriously need to pay down our debt. As it is, China and whomever else we owe, own us.