Which market? The only thing that's directly attackable by the market is the chinese cny peg/trading range and china controls the convertibility of the currenc

Which market? The only thing that's directly attackable by the market is the chinese cny peg/trading range and china controls the convertibility of the currency, they can perfectly legally stop their own citizens from taking money out of the country while protecting their peg with their USD reserves. Their bonds aren't in foreign hands, so there's nothing liquid to panic sell or short, there's nothing for the markets to directly apply pressure with. If the currency doesn't fall I don't see where this inflation comes from, cancelling debt essentially owed to a state owned bank just re-starts the credit cycle.