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Your debt figures are not correct. https://www.investopedia.com/articles/investing/080615/china-owns-us-debt-how-much.asp https://www.investopedia.com/articles
by sonnyblarney 8y ago
Your debt figures are not correct.
https://www.investopedia.com/articles/investing/080615/china-owns-us-debt-how-much.asp https://www.investopedia.com/articles/investing/080615/china...
Second, China needs that debt to be able to manage it's own currency. And though the Fed is not supposed play games like international currency war ... it will. The Fed and the USD are well poised to soak up any problems that China tries to play with USD.
It's also a game of confidence: do USD holders worldwide think that China can sink the USD with a little bit of war? Or is the global petrodollar resilient? Given the numbers and ratios ... it's clear that China probably won't win, cred remains in the USD etc.. So - it would have to be a coordinated shock - if there were both economic problems in the US, and dollar problems, and shocks in some other way and then China started playing games ... well that's something else.
- astaunton 8y agoi never said China would win, my point was the ripple effect it will have. These games could have major impact for the smaller mom&pop companies in both China and America. So in an effort to re-vitalize businesses it may in fact cause a lot of them to fold (as even medium businesses rely on the smaller one to provide a service)