its official, the trade war has truly begun. terrifs are about to be put in place on all chines goods. there is only one thing china can do in response to that. they have to dump treasuries. american bonds.
it wont do china anything to put terffis on american goods. they already have, and putting a little bit more wont do anything. china can now just wait, or they can dump treasuries. they might wait just a little bit longer with that move, i just cant come up with any other path. i tried. we have officially started here. this is about ip and core political ideas. the universe likes to prove me wrong in this time, i want to give options, not what will happen. but what else can china do? they will just become weaker and weaker. their bubble is worse then the american one. america will just fall harder. have to deal with being reserve currency and all of that. short term, america holds the cards. (should have used them earlier...)
this next week will be interesting.