America’s Largest Creditor: Will China End U.S. Trade War with a “Debt Reset”, by Dumping U.S. Treasury Holdings? | WHAT REALLY HAPPENED

America’s Largest Creditor: Will China End U.S. Trade War with a “Debt Reset”, by Dumping U.S. Treasury Holdings?

One of the reasons why it has seemed so bizarre that the United States would engage in a trade war with its largest creditor in China, is that China has a move that the United States simply can’t defend against.

In terms of any sort of engagement between the United States and China, for at least the last decade or so, it’s always seemed to me that China has an incredibly large amount of leverage over the United States. To the degree that if push comes to shove, China has available actions that the U.S. simply has no answer to.

For the simple reason that they do have the ability to end the U.S. Treasury scheme at any point in time. Because if China did just dump its U.S. Treasury holdings, that would very well likely end the debt bubble overnight.

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