“I think they actually don’t have the wherewithal to support the Yuan so much”
They have about $3 trillion in foreign reserves. About $2 trillion can be made reasonably liquid, and about $1.5 of that could be available to fight, without choking off ongoing activity.
More than enough for normal times, but well within what could be overwhelmed in a real crisis.
They could also face multiple concurrent crises, that all draw on the same pot of money, like a stock market collapse, or debt crisis.
Like most info on China it seems to be a mystery how much FX they have vis-à-vis the Dollar.
I assume the CIA has good info and Trump is relying on that.
Very proud that our farmers are loyal to Trump. Ag is our Achilles Heel in the ‘trade war’.