They are wrong no one will flock to us treasuries, the risk is absurdly high with near zero returns. Russia eu and india have not bought only sold off treasuries biggest buyer i is the fed who went into negative liquidity with a .1/ 4 percent hike in interest rate on treasuries. The losses of 44 billion + now to get rest of world to buy you would need a 2 to 3 percent… that would wipe out us gdp all of it would pay interest only on debt.
If it was me in china’s position I would make a public sale ever increasing sell wait for interest rates to go up then shadow buy back at fractions on a dollar as dumping occurs only to hold un repayable treasuries use the Clinton eminent domain rights and buy up the distressed farm land and wild fire land I n heartland and cali…. would cripple usa or start ww3
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This reply was modified 1 year ago by
namelus.
