That's really not how it works, though. The market for US Treasuries is such that China could dump their holdings and it at best only depress the price temporarily and have virtually no effect on the ability to issue more. It wouldn't change the US dollar's position as the reserve currency for most of the world. Pous, what would they replace it with? It is one thing for them to diversify their reserves. It is another to craft a viable plan which eschews the dollar. They'd harm themselves and the value of the yuan far more than they'd harm the US economy.
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GumbyTM ago
Retarded.
China can economically destroy us because they own so.much of our debt.
It's an economic nuke.
Thisismyvoatusername ago
That's really not how it works, though. The market for US Treasuries is such that China could dump their holdings and it at best only depress the price temporarily and have virtually no effect on the ability to issue more. It wouldn't change the US dollar's position as the reserve currency for most of the world. Pous, what would they replace it with? It is one thing for them to diversify their reserves. It is another to craft a viable plan which eschews the dollar. They'd harm themselves and the value of the yuan far more than they'd harm the US economy.