That’s where the Chicoms lose money. They have to sell bonds at a value less than they would get if they kept them. That would, in their thinking, force the US to raise interest rates on our new debt, which would hurt our economy.
They might be right, but they would have to sell a big chunk of that trillion dollar bond debt, at a loss, to do that. I don’t think the wobbly Chicom economy can do that without a big economic seizure.
Yeah. I don’t think screwing the US is sufficient motivation for taking such action, especially when their economy seems to be stagnating.
Wouldn’t there be many investors world-wide that would jump in to buy bonds at a reduced price (and subsequent higher interest rate) which, in turn, would mitigate the perceived “catastrophe”? After all, US bonds are still one of the safest investments in the world.