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"China has been a less aggressive buyer of the U.S. sovereign debt" It means China is dumping US debt. Which will mean a surge in interest rates, a weaker US d
by codesushi42 7y ago
"China has been a less aggressive buyer of the U.S. sovereign debt"
It means China is dumping US debt. Which will mean a surge in interest rates, a weaker US dollar, and in a nightmare scenario, hyperinflation.
- _0ffh 7y ago> It means China is dumping US debt. Which will mean a surge in interest rates, a weaker US dollar, and in a nightmare scenario, hyperinflation. But then again, the popular wisdom seems to be that a weak currency supports exports. So I don't know that this is clearly a bad thing. Hyperinflation I would peg to be usually caused by a break down of the domestic market.
- wolco 7y agoA weak currency means more exports but higher import prices. Add the additional tariff coming soon means anything from China will get more expensive. Perhaps this forces Trump to drop them.. it could backfire and create a local industry that will compete against China.
- whatshisface 7y agoIf you believe Trump, then the creation of a tarrif-protected local industry would constitute "front-firing."
- ChrisLomont 7y agoThe article states China’s holdings are still increasing, the opposite of dumping. Japan is simply increasing faster.
- b_tterc_p 7y agoWouldn’t that deeply hurt the Chinese economy as their boost from their currency inflation goes away