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Indeed, the bond market is liquid and deep. If China wanted to dump the Treasuries they own, the US could easily opt to buy them back to prop the price up as a
by manacit 7y ago
Indeed, the bond market is liquid and deep. If China wanted to dump the Treasuries they own, the US could easily opt to buy them back to prop the price up as a method of last resort, which would likely not have a huge impact.
It would probably hurt them in the long term if anything - weakening the dollar makes their export-driven economy more expensive, ultimately stifling growth.
- mirimir 7y agoOK, that's good news. But hey, I live in the US. Most everything in big-box stores is made in China. I can't quite imagine how China could just cut off exports to the US. But maybe they have a slush fund. And I certainly can't imagine how the US could function without stuff from China. Who could fill the gap? I was in the US during the 70s oil boycott. Gas lines. Oil too expensive to stay warm in the winter. It sucked.