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China has too much USD denominated debt to last against a protracted trade war.
by RhodoGSA 5y ago
China has too much USD denominated debt to last against a protracted trade war.
- chii 5y agoThat's not really true - china uses the USD they own to peg the RMB to enhance their export. In times of war, this USD debt is going to be a liability for china, since the US can just refuse to repay it (and after all, what else is china going to do about? Declare war again?).
- RhodoGSA 5y agohttps://www.lynalden.com/global-dollar-short-squeeze/ https://www.lynalden.com/global-dollar-short-squeeze/ Kind of explains the problems with China having too much USD debt. Even without times of war.