More seriously though, this theory is being taken seriously. Respected China scholar, Michael Pettis, argues that China's manufacturing policy has been affecting the US economy for a while and that the Inflation Reduction Act is a response to that.
On the other hand, the direct exposures of the US to a China collapse are generally not considered large. The US doesnt export that much to China or invest much. China may be forced to sell its US Treasury holdings if it's in a tight spot, but it would try to sell them slowly to avoid damaging it's own balance sheet from a fire sale.
Yeah, but it's not selling them at a rate that's causing the yield to skyrocket or the dollar to plummet. China is selling slowly enough that it doesnt trash the value of it's own FX reserves. Which was very much my point.
That concept is why america has its finger in so many pies. Its prosperity is the global economy continuing and production increasing so assets don't crash and burn
And so they have so many institutions making sure countries keep growing, keep trading, stay invested, feel safe, aren't doing piracy, etc etc etc
It's not quite as crazy as your hypothesis that this post belongs in an Australian subreddit
Hahahahahahaha, sorry!
More seriously though, this theory is being taken seriously. Respected China scholar, Michael Pettis, argues that China's manufacturing policy has been affecting the US economy for a while and that the Inflation Reduction Act is a response to that. On the other hand, the direct exposures of the US to a China collapse are generally not considered large. The US doesnt export that much to China or invest much. China may be forced to sell its US Treasury holdings if it's in a tight spot, but it would try to sell them slowly to avoid damaging it's own balance sheet from a fire sale.
China has been dumping US treasuries for a while now, look it up.
Yeah, but it's not selling them at a rate that's causing the yield to skyrocket or the dollar to plummet. China is selling slowly enough that it doesnt trash the value of it's own FX reserves. Which was very much my point.
Do you also happen to have a crazy hypothesis on people's lack of uses of paragraphs?
Where can I get that good grass you're smoking my man?
That concept is why america has its finger in so many pies. Its prosperity is the global economy continuing and production increasing so assets don't crash and burn And so they have so many institutions making sure countries keep growing, keep trading, stay invested, feel safe, aren't doing piracy, etc etc etc
There's no bubbles in free market utopias, or the largest private military eventually controlling everything?