China to retaliate by not buying treasuries

Discussion in 'Economics' started by Cuddles, Mar 23, 2018.

  1. toc

    toc

    Not really, US can devalue the dollar by 50% a wipe off half the debt on its balance sheets. However, this strategy will surely have its negatives in both short and long run for US economy.

    There are other "hard pill" type of alternatives available but no party or president would go for it for political reasons.
     
    #11     Mar 24, 2018
    athlonmank8 likes this.
  2. DeltaRisk

    DeltaRisk

    “The Fed only raises interest rates in order to lower them when a recession has started.”

    Go take a look at the FRED database.
     
    #12     Mar 24, 2018
  3. China steals a fortune from us. Itll be fun to see how they survive on their own.
     
    #13     Mar 24, 2018
  4. assets to liabilities. youre only looking at one side of the equation
     
    #14     Mar 24, 2018
  5. JSOP

    JSOP

    #15     Mar 24, 2018
  6. schweiz

    schweiz

    First rule in war, so also economical war: NEVER UNDERESTIMATE YOUR ENEMY.

    If you always think that you are always the best and the greatest, that will make you vulnerable. Remember David and Goliath.
    The China from now is not anymore the China from 20 years ago. There is a lot of high tech and in some areas China passed already the US.
    The biggest mistake one can make is think that you are so important that you are essential for others to survive. Graveyards all around the world are filled with dead people who where "very important", but after their death everything went on like usual.
     
    #16     Mar 25, 2018
  7. schweiz

    schweiz

    In real life you can lose assets much quicker the liabilities. Leaving you with nothing but liabilities in no time.
     
    #17     Mar 25, 2018
  8. Sig

    Sig

    It's amazing how vapid the financial press is that they don't get this fundamental aspect of trade economics. What a waste of ink!
     
    #18     Mar 25, 2018
  9. you sound like a Chinese propaganda machine.

    China has to steal tons of IP to get ahead. What are they innovators at?
     
    #19     Mar 25, 2018
  10. it was mutual beneficial.
    the cash or USD that China receives from US exports weren't used to buy US bonds that generate decent returns for the risk.
    People in China are like high rate 'savers' and there used to be on credit cards and no mortgages in China prior to 2000.
     
    #20     Mar 25, 2018