The recent sell-off in the US debt market is hitting US Stocks, and it could potentially get much worse. China, who has been the largest buyer of US debt, is no longer buying US debt, as the trade war escalates.
I have on my daily MarketReport video blogs, explained that this trade war is not one the US can win, because our debt is a liability which can, and IS, being weaponized by China.
Without China buying US debt who will "take up the slack?" The Federal Reserve? Another nation?
Why is no one talking about the fact that China is weaponizing US debt in this worsening trade war?
The answer is simple, you are not supposed to know about it...
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China would need an alternative to US debt. Currently (from a government point of view) I don't see an alternative with a better or equal reward/risk profile. That's why I think the USD will continue to rise in the months ahead, while EUR, RMB, YEN down.
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They are not worried when all is manipulated.
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I may be wrong, but this may be something that P Trump anticipated. I'm speculating on the following. He knew a collapse would come no matter what he does. He let the rigging continue, started fighting back on the trade war that was already in progress (and we were getting our ass kicked because of wimpy presidents and elected officials), knowing that China would strike back on the debt. That being the case, the collapse could be blamed on China when they dump our debt. Meanwhile P Trump has been building credibility on "promises kept" even though they aren't quite totally true. (It would appear the worst parts of NAFTA are still in place).
In any case, whatever happens, we are better off with Trump in office in a disaster than any other leader I've seen in my lifetime. I could be mistaken about this as well as historical events unfold. We all need to prepare and pray.
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So you think that China will go easier on us because we have a retard as president?
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Or is that the start of no one want this losing purchasing power fiat?
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