Wednesday, April 12, 2023

China has dumped $150 billion of U.S. treasuries since Jan. 2022. Is it a prelude to war?

China has dumped $150 billion of U.S. treasuries since Jan. 2022. Is it a prelude to war? - By Robert Romano
But does it matter?
..With $859 billion of treasuries, China owns just 3.5 percent of the $24.6 trillion of the publicly traded national debt (with the overall debt now north of $31.4 trillion)...
  • ...a complete divestiture of treasuries by China after sanctions were levied on Russia following its invasion of Ukraine in 2022 could indeed be a prelude to war, indicating Beijing wanted to get back as much of its money as possible to fuel a move, say, on Taiwan — the Chinese navy is currently encircling Taiwan — since one of the first things the U.S. would do is simply end all payments to Chinese holders of the debt...

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