Once "allies" realize they are funding their own occupation by buying our treasury bonds do you think they will wise up and stop? Also was Yellen able to push any more T bills on the Chinese during her last trip to Beijing or did she only focus on "tripping ballz"
Discussion
The Chinese know the state of the American fiscal position and with that are doing their own version of QE. Letting Treasuries in FX reserves simply roll off.
As for the Asia Pac allies, my view has been that the countries in question are heavily reliant on exports to the US and with that are more concerns about maintaining market access rather than a supposedly more aggressive China.
It's an odd relationship between the Asian trading partners and the U.S. I realize it is basically vendor financing and allows these countries to maintain cash flow, but wonder how long they will keep accepting the ever inflating U.S. fiat currency.