It’s really important to put the pieces together here. And you can find a 1,000 editorials that have a different take, but Janet Yellen has been to China twice this year. Everybody (countries, corporations, funds, persons, etc) that bought bonds in 2020/2021 (and the Fed said, “we’re not even thinking about thinking about raising interest rates…”) are underwater since Fed Reserve hiked interest rates faster than any market in history and actually shrank M2 (1/4 times in history). Below are her comments. We opened swap lines with China to keep them from selling treasury bonds (if something broke-which China has a lot that’s broke). People sell what they can, not what they want, when debts come due. I firmly believe we are seeing China use those swap lines to hold treasuries until we get the Fed Fund Rate below inflation (<2% according to Truflation) and they recover on the valuations of their treasuries. This is excellent evidence that the US is trying to price fix the bond market. The money printer is going to be so hot you can’t touch it. I’m wrong everyday, but I don’t think I am about this. Let’s go!!!

https://home.treasury.gov/news/press-releases/jy2241

“Third, we are announcing that we will continue a series of financial technical exchanges between the United States and China. Just like military leaders need a hotline in a crisis, American and Chinese financial regulators must be able to communicate to prevent financial stresses from turning into crises with tremendous ramifications for our citizens and the international community. Over the past few months, we have hosted several exercises with China, including on how we would coordinate if there were to be a failure of a large bank in either of our countries. I’m pleased that we will hold upcoming exchanges on operational resilience in the financial sector and on financial stability implications from the insurance sector’s exposure to climate risks”