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Problem is they don't have the money to buy. As their trade surprise shrink they have less USD to buy debt. Simple.
USA forcing China to buy debts. But China refusing to buy any further USA debts and threatening to dump existing US debts. I can see USA - China war.
Both are nuclear powers, if the two come to blows it will instantly become a Global war. No middle ground on this one.
War can be economic war or military war. China and USA have had an aggressive past. Few years back China holding captive USA pilots when 2 war planes collided. Chinese hackers hacking into pentagon, USA navy instalations and other sensitive areas. China's desire to dominate USA in terms of military, technology, economically and financially is the most dangerous. Now USA and China are having an aggressive economic stand due to USA debts purchase and dumping.
Right and their system is a house of cards. 5000 years of anarchy. No rule of law, no history of individual independence, no Churches, nothing to hold the society together other than the economy. The economy has replaced communism as their control structure. It presents a real danger to the country because if things get really bad their society could collaspe and no telling one kind of government comes out of it.
Well stated. And why its in our best interest to support the status quo in China. India is not yet ready to be an effective buffer against the chinese.
Guys, if China dump US dollar, what will happen to the exchange rate? Don't we want higher Yuan? Ultimately, China will buy and sell US treasury based on targeted exchange rate. Not for profit or investment purpose. Everytime they adjust their currency upward, there will be less treasury buying and vice versa. Of course, another variable in the buying and selling is the trade surplus number.