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>And, while not likely to be used in the near term, this is absolutely an investment in defense. How? By dumping them below market rate? US/JPN will just print
by winfred 13y ago
>And, while not likely to be used in the near term, this is absolutely an investment in defense.
How? By dumping them below market rate? US/JPN will just print money and buy them.
If ever there is a war between these nations, these bonds become worthless overnight. Make no mistake, these T bonds are liabilities for China, not the other way around.
- Lost_BiomedE 13y agoIf the Chinese gov did that after loading up on gold, and backed the chinese currency with a fraction of gold, they would have a much better chance of convincing others to drop the US dollar as a reserve currency. How do you go broke? Slowly, then all at once.