The article sez Private buyers are "stepping in" to buy he USTs the Chinese no longer want. Which maybe they are to an extent as long as the interest rates stay high, but even with high interest rates there's no way the private sector can absorb a full-on dump of USTs by the Chinese if/when they choose to do so They simply hold too much of this Toilet Paper Right now they're dumping in slow, measured amounts because a full on dump would crash the market.
It's just a matter of time because Everybody Knows this debt can't be paid, at this point even just the interest on the debt is greater than the miiitary budget. All the Chinese are doing is biding time until they have the BRICs currency and a replacement for the SWIFT payments system fully in place, and ste by step, that's coming to pass.
This is the real Sword of Damocles sitting on top of the whole global geopolitical battle, the only unknown is when it will blow. It may just evolve, or there may be some geopolitical trigger. Either way, that's when SHTF Day arrives.
https://unherd.com/newsroom/chinas-record-us-debt-sale-threatens-western-alliance/
China's record US debt sale threatens Western alliance
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China’s record US debt sale threatens Western alliance
Started by RE May 25, 2024, 09:08 PM
Message path : / Society / The American economy / FSoA Sovereign Debt Hockey Stick Blues #12
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