Chinas Economic Revenge?
February 12, 2010
China holds trillions of dollars of American debt, making them our primary creditor. What would happen if China sold off US treasuries and all risky US assets, including asset backed and corporate? In short, an economic catastrophe! Most analysts say that China wouldnt manipulate bond markets because it would hurt their economy as well, however pressure from the military over US-Taiwan relations could lead to an attack on the dollar.
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