China owns a bit under a trillion USD of US Treasury bonds, that is to say, debt. If they decide to liquidate it, that’s enough to seriously affect the value of those bonds, and therefore the US’s ability to borrow more money, and from there, the value of the dollar.
There are a few comments elsewhere saying there are no facts to back it up. Canada has an election coming up and it makes great headlines. Carny has a doctorate in economics (?) and has been the head of bank of Canada and Bank of England so he’s well versed in bonds and currencies.
China owns a bit under a trillion USD of US Treasury bonds, that is to say, debt. If they decide to liquidate it, that’s enough to seriously affect the value of those bonds, and therefore the US’s ability to borrow more money, and from there, the value of the dollar.
Few countries are doing the same
https://deanblundell.substack.com/p/carneys-checkmate-how-canadas-quiet
Oh, this was an excellent read. Thanks for the link!
There are a few comments elsewhere saying there are no facts to back it up. Canada has an election coming up and it makes great headlines. Carny has a doctorate in economics (?) and has been the head of bank of Canada and Bank of England so he’s well versed in bonds and currencies.