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Isn't this essentially "we're closing borders"? Since the gloves are officially off, I'm wondering about something. Doesn't China hold a whole lot of US treasu
by vdupras 2y ago
Isn't this essentially "we're closing borders"?
Since the gloves are officially off, I'm wondering about something. Doesn't China hold a whole lot of US treasury bonds? What happens to those famous 10 years yields if China sells all its US bonds (why would it want to keep them if the relationship is dead)?
- actionfromafar 2y agoNot an economist but doesn’t it also depend on what you think the rest of the world would think about the dollar in the future?
- lawn 2y ago> Isn't this essentially "we're closing borders"? Even if Chinese goods becomes twice as expensive, many are still cheaper than what you can buy in the US (if they're even made there). Some businesses just don't have a choice, or they'll go bankrupt.
- vdupras 2y agoYes, but we see that the "raising" logic is in place. Whoever stops raising the tariff "loses face". So they'll raise them until... infinity?
- re-thc 2y ago> So they'll raise them until... infinity? We got to follow the formula. So when US no longer has a trade deficit with China, we'll be back to 10%.