I suppose we can always go a bit backwards now thanks to Russia. Build under-ground railroads to Europe... Time to invest in tunnel drilling companies
%% May have wanted to unwind much of those@ one time, they had such huge amounts of it.Its complex, because we bought so much stuff from china+ they need to do something with all thier us dollars besides keep it in a rat hole/LOL I have a yellow chicom crowbar amazing low price + good steel Internet investopedia says they own more us debt than japan.
China will let their holdings of US debt mature and will participate in future treasury auctions minimally and of the shortest duration.
Putin told that they would pay all debts in rouble at the actual price. So minus 50%. Legal obligations are not respected, only the law of Putin counts. Today he pays, tomorrow not...
%% Glad to hear that [sarcasm]. In a rare moment of honesty \ that[russian] evil empire said ''treaties are like pie crusts \made to be broken'' Whats wrong with that bond buying pic??
China accumulating gold for a while, now and silently, moving to yuan as currency payment for trades. Right now, the US dollar is the world's reserve currency. That could change as Russia and China see the folly of trusting US banks.
What legal obligations you talking about? Their $$$ is in US bank and US won't allow them to use it. Where they get the $$ to pay? Does not make any sense.
But you know China can't hold Yuan as FX reserve. So they have to buy something. Certainly not Western currencies like Japanese Yen, US Dollar, not Swiss Franc, or Russian Ruble. It is the metal.
The Chinese idea is to replace the US dollar with the Yuan as the reserve currency. As long as their currency reserves is in dollars, the US can just grab their currency reserves like they did to Russia, if they get sanctioned. You will be at the mercy of US banks handling your reserves. If the Chinese really want to protect themselves, the smart way is buy oil, lots of it and build silos to store hundreds of millions of barrels of oil. Buy commodities in bulk, gold, nickel, copper, palladium, etc. and hoard it, build storehouses to store it all. It is not going anywhere. Commodities and Oil will rise in price, as there are limited quantities. You will have most of what you need and not be held hostage by any country. Of course, China would also, have a strong military to impose its will in the South China Sea and even, invade Taiwan if they wish. I doubt the US would defend Taiwan.