I think I lean the other way on this subject.
China selling is indicative of their internal struggles more than anything else. If they aren’t accumulating Dollars to recycle into Treasuries, then that implies the model is broken for them domestically and globally.
In other words, if they accumulate Dollars, what else can they do with them, and if they don't accumulate them, what has changed?
Bankruptcy for a country that can make up its own paper money ( whether we like it or not ) is also not possible. It may choose not to pay, but can’t be declared bankrupt by anyone who should be taken seriously.
Trump is also so ego driven, a year or so of a slumped market and economy and he will start spending again IMO. He will be faced with a choice ( as gov spending is a component of GDP ) which means accept growing discontent with the outcomes of his policies, or spend big and let the next guy deal with it.
He won't want to be the man who leaves office hated. He will find a reason to spend and claim he has cut waste and fraud ( I think. )
Somehow true. When you start paying Dept with new money of the federal reserve, people loose faight into the USD and very fast its value goes literly to zero.
And the cridibility of US-Bonds will also loose attraction. So then not only china will sell their bonds.
It is the same like a Bankrun. Only that it is the US government yhat crashes then. This is independent of any declaration.
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