Dr. Keith Weiner latest economics masterclass puts paid to the chatter doing the rounds about China flogging off its Treasury Bonds to crash the Treasury bonds market. That would be the nail in the coffin of the already struggling Chinese economy – so it won’t happen.
“The Independent Institute wrote (replete with a graphic purportedly showing a “nuclear bomb”) about it:
What would happen if the Chinese government were
to weaponize its holdings of U.S. Treasury bonds by suddenly selling off all of
That’s an option that has been suggested by Hu Xijin, the editor of the government-controlled Global Times.
Dumping its U.S. national debt holdings is considered to be China’s “nuclear option” for retaliating against the U.S. government in the trade war…”
Read the full Report here.