I don't know what you are referring to nor do I care. I am not familiar with him. If you think what he stated in the quote I posted is incorrect, point out where he is incorrect or for that matter where I am incorrect. How does the Chinese government peg its currency to the dollar?
There is no risk with regards to where I keep my respective accounts. I do not bank with mom and pop.
I’m going to save myself the time and let you google why that is important, there is also many informative books, articles and research studies one can study up on. China cannot hit our economy as hard as we can hit them. Our global banks are economic hitmen, we’ve destroyed quite a few economies when it’s suited us best. It just depends on which side the international community sides with. Perhaps they have a manufacturing edge on us currently, but we built up that edge for them. They’ve got no chance to destroy our economy unless we’ve reached a “new normal.” It’s basically a moot point, unless they are to be the blame for our coming recession. Which is inaccurate considering the involvement of that country, even with GDP taken into consideration.
If China stops accumulating Tbills, that would be a direct result from less exports to the US. If they stop buying them on rotation... letting them expire and doing nothing... that would mean they would have too many US dollars in cash, not earning any returns. So they would have to buy other USD denominated assets, which will be difficult for them since Trump is pushing against foreign investments in the USA... Or they would sell US dollars for something else. That would also go against their wishes of a low valued Renminbi. They are already looking at lowering the RMB as an options in the tit-for-tat in this trade war. So to me, it seems China isn't just going to stop buying Tbills... they would hurt themselves more than the US. The US on the other hand wants a lower USD vs the RMB... but they also like the low interest rates they pay on debt. The last is a consequence of the USD being the reserve currency whereby everyone wants to hold USD and invest in things like the Tbills.... and it being used in the major commodity trade. Unless the US actively pursues stepping away from the USD being the worlds reserve currency... shit isn't going to work out exactly like Trumps wants. And I doubt the US wants to stop with it, since their debt would become a bigger problem. So... basically the US is still stuck in having to be competitive on the global market through innovations in design and efficiency.... not through competing with a same product same price level... Nothing wrong with that, but it seems Trump is still missing that point.
Someone asked why China doesn't want a better / higher yield on the treasuries they purchase? Trade deficits and USgov. budget deficits benefit China today. They encourage and fund a low cost (same annual cost as 1980's budget deficits) deficit . This is in effect the US gov. stepping up to compensate for this 500bil. trade deficit by spending in the uS economy. Pivoting to domestic demand, trading treaties possibly usng non USD payments and eroding USD as reserve currency may be long range plan. US trade and gov. .deficits assist China towards these future goals. This is all true because ZH said so. Possibly , realizing this, is why some Westerners wish to tip/tilt today from a relative strength position.
I wouldn't necessarily say it's true because ZH says so... ZH has always been pushing a certain narrative. You've lost me here... which Westerners and what relative strength position, you mean being reserve currency and global economic power?
Yeah, from that relatively strong position you mention. But I don't believe at all this will actually go far. Probably dropping of all tarrifs and better US access to Chinese markets....a deal in the next 6 months and a 2500 SP500.