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China can't just "call in" debt from treasury bonds, that's not how they work at all. And what happens after they sell a bunch of treasury bonds? Everyone knows
by deadmetheny 8y ago
China can't just "call in" debt from treasury bonds, that's not how they work at all. And what happens after they sell a bunch of treasury bonds? Everyone knows that the yuan is propped up by the Chinese government and ain't worth a spit internationally, and US treasury bonds are still considered a good investment at present.
- onlyrealcuzzo 8y agoRight. Wouldn't they have to find a buyer for the bonds? That'd likely increase the yield quite a bit, which would descrese the value of China's holding a lot, right?