China Could Collapse USA Financial System In Trade War If It Chooses

[Economy 52,882]

https://www.cnbc.com/2018/04/05/chinas-1-point-2-trillion-weapon-that-could-be-used-in-a-us-trade-war.html

 

While it is not in China's best interests to collapse the US economy and so far such a threat has not been directly made, China does have tools to respond viciously if Trump insists on an ever rising escalation

 

China is the largest single holder of US Bonds/treasuries (US Debt) about $1.7 Trillion worth

 

That is more than enough to collapse the US Dollar and force yields/interest rates thru the roof which would cause a complete meltdown to the financial system if these bonds were sold off.

 

However again, it is not in their best interests to do so, so China would probably leave this as their last resort tool.

[Economy 52,882]

Honestly despite Trump's tendency to exaggerate or makeup numbers on trade or not fully understand of a lot of the trade issues with the world he complains about...

 

If there's one major Country that does have unfair trade practices it's China...

 

But when Trump deals with them and tries to get concessions he needs to understand they are very powerful and the US doesn't hold all the cards against them. His "America can win any war" attitude could be his own undoing

 

China was starting to show some flexibility and opened for concessions and when Trump didn't think it was enough he decided to go in an all out trade war. He should have seen that progress and see where it went first but everything with him has to be handled with fist and knuckles

[DeanWinchester 41,390]

1 hour ago, Economy said:

If there's one major Country that does have unfair trade practices it's China...

it's true but they don't care. China is throwing its weight around Asia and not many countries can call it out on its bull

[Benji 20,113]

Isn't this very likely to cause a recession across the globe though?  It would be detrimental to both and the rest of the world if they were to attempt this... just threatening this as a move would be detrimental to both.

I don't think it would come to this though, Trump's style seems to be throw everything at someone and then be onboard for sorting out the mess that caused and the root of the problem that triggered it.

[Economy 52,882]

51 minutes ago, Benji said:

Isn't this very likely to cause a recession across the globe though?  It would be detrimental to both and the rest of the world if they were to attempt this... just threatening this as a move would be detrimental to both.

I don't think it would come to this though, Trump's style seems to be throw everything at someone and then be onboard for sorting out the mess that caused and the root of the problem that triggered it.

Yes. Hence why I said not in their best interests to do it

 

But the point is if they are really pushed over the edge, they do ultimately have power to really cripple the US. They would just have to be willing to take damage along with America

 

Trump acts like he holds all the cars tho when he doesn't the way he's trying to rectify the trade deals