What Would Happen if China Started Selling Off Its Treasury Portfolio? - Article from Council of Foreign Relations.
One thing not mentioned in the article. Should China or any other country decide to attempt to unload enough bonds to make a difference the USA would likely invoke the 1977 International Emergency Economic Powers Act, which gives the US president all the legal authority he would need to freeze foreign owned treasury securities held by US custodians.
China and other countries have better ways in their own countries to screw with US corporations to put pressure on trade disputes. The only thing for certain is if trade wars come to fruition the US consumer will suffer first and most. US corporations willingly and with enthusiasm moved their manufacturing overseas. There is no way they are going to see their record profits plummet by moving back to the USA at this point. They and the Wall St financiers that facilitate this money machine will have their employees in the executive branch and congress correct this situation.
the USA stops funding Chinese businesses to the tune of $300 billion a year and the USA consumer is worse off?
I guess the T bills filled that gap in?
It is already happeningâŚ, the successful companies inside the wall have global operations they can switch to!
Meanwhile states like Iowa will sufferâŚ
And China gains another port for one belt one roadâŚ
Harley had already started their Thai factory before all this, whyâŚ
Big taxes on imported bikes all over Asia
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Buying a Harley is a lifestyle choice. 99% are recreational machines. (I live near one of the UKâs largest dealers) It is a success where branding and heritage sell the product. The trade war Trump has instigated will harm the USA irrevocably if it continues, with China being the chief beneficiary.
The current $300 billion a year trade imbalance with China cannot continue. Something must be one to achieve a near balance.
American cannot offshore manufacturing its basic needs, and expect to remain an independent democracy with a good standard of living.
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China have been called out and they dont like itâŚ
Dictators are used to getting their own way
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Trump has a simplistic view of the world that simply doesnât work in the 21st. century. That is both his strength (It is a populist view widely held hence his ratings) and his weakness (it doesnât work in todays world).
He would be better looking at FDRâs New deal and investing in the USAâs creaking infrastructure to make it more competitive and easier to do business with.
BTW the D in FDR is Delano, one branch of the family had a Steamship operation on the Yangtze till they were run off the river, so FDR knew what China was about from his father in law.
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I dont think he has a simplistic view, he understood very well where the USA would be today 25 years ago due to the gov policies.
Plenty of Interviews in those days show that.
He is just trying to reverse that situation he hoped wouldnt come.
Like T Boone Pickens, didnt want to see the USA bankrupt in his lifetime due to poor management.
Yet his policies will do nothing but make the problem worse.
So far, his policies are working a lot better than most people expected. Not that I agree with them all. Itâs impossible to predict. Only time will tell.
The rest of the world has not had time to properly respond yet. Things can get interesting when the EU starts to target red states.
foxcon opening a factory in the USA,
USA selling oil and gas to china and others?
Harley Davidson opening factories in countries that have taxes to hinder imports ( this was prior to the new ones)
North Korea at the negotiating table
whoâd a thought?
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What will Chinaâs response be if we put a Marine contingent on Taiwan to guard our embassy⌠OopsâŚI meant our âAmerican Institute in Taiwanâ?
It is not likely that anything, other than an official protest from China will result from placing a dozen or less Marine Guards at the brand new defacto Embassy in Taipei.
The same can be said for appointing a senior carrera Diplomat as head of the American Institute,who will be a defacto US Ambassador to a non-existing country. (Which US does not recognize as independent)
Why are they doing this, other than to piss of China? What are they hoping to gain by this action?? (If it happens)
I can see no gain from this but plenty of pitfalls:
It helps cementing support for the Chinese Government among its own people and by countries who also feel bullied by the present US administration. (There are plenty of those these days)
It gives China an opportunity to take the US to the Security Council to get a vote against. (Which will be vetoed)
It can stir up the pro-independence parties in Taiwan to believe that the US will actually come to their aid IF they should provoke China into changing status quo.
Another proof that the present US administration live in their own dream world, or in the wrong time.
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what we need is for Taiwan to go and liberate China and then there will be peace in the world
PS who trusts china?
who want to migrate to china?
There is the land or the free and there is ChinaâŚ
So an imperialist, genocidal, dictatorship says they own Taiwan, Taiwan says theyâre independent, and you side with the genocidal ones? That says a lot about youâŚ
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No no, this is an example of the âgood kindâ of nationalism displayed by âthe motherlandâ that heâs discussed before.
I seldom agree with Trump on anything, but when he asked; âDo you think we are so innocent??â I believe he for once spoke the truth.
PS> Why donât you two concentrate your effort on commenting things American that you may be having a little knowledge of.
You are just showing your ignorance of anything going on outside USA by trying to belittle everything and anything foreign, incl. your fellow seafarers of other nationalities.