What Happens If China Dumps Us Bonds

Treasury bonds — is selling. This is not the moment to dump your stocks. government debt. 18 trillion invested in securities. The US buys Chinese goods, and China finances US debt. Russia has rapidly sold off the vast majority of its stash of American debt. If the media would bother to post the numbers, you might note there is a serious imbalance in trade between the US and China which favors China pretty heavily. Government Debt Shift in Treasury holdings is latest symptom of emerging-market slowdown hitting global economy. China, the largest financier of the US debt, drops the debt bomb. WASHINGTONAt last count, China held slightly more than $1 trillion in U. For Pakistan, the rupee-yuan settlement of trade with China is important because “it would reduce our needs for US dollars to a significant extent as our imports from China are in excess of. Worthless dollars will flow back to the United States from China and the rest of the world, as central banks trade the worthless dollars in for other currencies and gold. What would happen to the Dow and S&P 500 if yields spiked because China started some heavy profit taking? What would that do to Trump politically? What would it do to the Fed’s ability to administer monetary policy by managing rates? China still owns over a trillion dollars in Us Treasury bonds. return the money or surrender the security bond required up. debt weapon. As a result, in recent years, China's holdings of Treasury bonds have increased rapidly, according to federal government data, expanding 2. and slowing growth have taken a toll on Chinas economy. As I mentioned yesterday, China literally has hundreds of different ways that they can hurt us. Debt? Bond Market Turmoil Sparks Fear of MASSIVE SELLOFF! China And The US Boom Bust 49,224 views. At that point, short of dabbling in the possibility mutually assured economic destruction, whereby the Chinese could dump US bonds if America were to threaten high tariffs on Chinese goods, or. China still remains the biggest foreign holder of US Treasuries, however, followed by long-time US ally Japan. Trade relations between China and the West may be on the brink of a substantial turn. — the ability to start dumping its massive pile of Treasury bonds that could trigger a surge in interest rates and substantially. The more bonds the Chinese dump, the better. Russia has rapidly sold off the vast majority of its stash of American debt. Back in 2016, China's Treasuries holdings fell sharply by some $200 billion from May to November of that year as the yuan depreciated on worries about the Chinese economy. 043-billion in damages annually owing to U. May 13, 2019 · If China Sells Its U. Ambrose Evans-Pritchard: China's dumping Treasuries won't win the trade war. 3 Trillion dollars +/-) I believe to other countries then that would cause an event similar to 2008 financial crisis, or worse. Treasuries?. long-term interest rates could go up. 14 trillion in U. Treasuries is a way for China to temporarily offset its currency problems, which is likely a big part of the reason why we're seeing such a large, prolonged selloff. Does China have a chain around America's neck because it owns so much U. But it begs the question, what would happen if China started selling U. T his arises because of the split of prize payouts. Whatever China does, China will to do it at its own pace and timeframe and not anyone elses. Icahn said in an interview on CNBC. Bitcoin's price is expected to climb fast if China starts selling US treasuries. And China also got rid of American debt by selling nearly $17 billion in January. 2017 – short-term interest rates have been steadily rising. Whatever China does, China will to do it at its own pace and timeframe and not anyone elses. Therefore, they ditch shorter-term government securities (more notably, the 3-month T-Bills) for longer-term government bonds (more notably, the 10-Year T-Bonds) to hedge, hence. com) - China has dropped 97 percent of its holdings in U. 799bn reduction in its Treasury holdings in April… And while “Great ally” Japan did dump Treasuries for the 8th month in the last 9 to it lowest holdings since Oct 2011… It was Vladimir. There are other wrinkles to the issue as well. debt, things could. Luckily, it's highly unlikely to happen because a Treasurys dump would hurt the US, China, and the world, in that order. We have no proof this going to happen this year or next, but all the signs are pointing in that direction. credit conditions and higher domestic savings. On August 5, 2019, the People's Bank of China set the yuan's daily reference rate below 7 per dollar for the first time in over a decade. The bottom line is that since China has become a net seller of Treasuries, liquidity has dried up. the myth of china dumping us dollars by The Daily Coin · February 21, 2016 by JC Collins, Philosophy of Metrics Why America Has a Strong Position in the New Bretton Woods Negotiations Understanding how balance of payments work is key to understanding the monetary leverage which one country holds over another. And change it must, for our debt is unpayable. Is it likely to happen, not quickly, this is because with such a large holding, China will essentially reducing the value of its bond portfolio if they start selling large quantity of bonds in the open market. anti-dumping. 12 trillion, according to Treasury International. Explore mutual fund resources, portfolios, and mutual fund commentary at Zacks. Here's the answer and what it means for the US economy and monetary policy going forward. May 13, 2019 · Consider it China's nuclear option in the trade war with the U. Where did you get the $100 trilion number? US government debt is $22 trillion. If Obama Imposes Sanctions, Russia Will Retaliate By Dumping U. government bonds as a source of leverage that could eventually be utilized when diplomatic relations between the two largest economies in the world break down. com) - China has dropped 97 percent of its holdings in U. On Tuesday evening, we asked what would happen if emerging markets joined China in dumping US Treasurys. "Russia tells us that they are very interested in a similar agreement with us," Unger added. You’d have to be pretty naive to tremble at this. Almost Everything Donald Trump Says About Trade With China Is Wrong each device imported into the United States from China accounts for and it’s a very common result of U. Teancum writes "On the list of items on the upcoming federal budget for 2012, the U. Department of Commerce determines whether the dumping or subsidizing exists and, if so, the margin of dumping or amount of the subsidy; the USITC determines whether there is material injury or threat of material injury to the domestic industry by reason of the dumped or subsidized imports. by Mish Shedlock, The Maven: The alleged "nuclear" option of China dumping treasuries is Much Ado About Nothing. But that is a challenge at the moment because for that to happen, international demand has to rise, and China needs to consolidate its production capacity. Global imbalances and the Triffin dilemma. This action “would slow but not derail the US recovery. Save documents, spreadsheets, and presentations online, in OneDrive. What would happen if China sold its Treasury holdings? It would deplete China's own financial resources, dent confidence in the country as a responsible actor and spook global markets. Market analysts think China is unlikely to make a move that would harm. Market analysts think China is unlikely to make a move that would harm. All those dollars in foreign accounts will come home,. 14 trillion in U. A fall in U. Treasuries by Russia caused barely a ripple among U. Deep State Bubbles: Pump, Dump & Blame It on Trump by Mitch Feierstein about 9 months 3 weeks ago What we know now: Coordinated global central bank market manipulations have distorted price discovery mechanisms impacting valuations in stock, bond, and property markets. No way to create replacement - the trust is a reason dollar is no. IS YOUR RESUME A BARRIER TO YOUR NEXT JOB? Open Doors with a Well-Written Resume. A key point in this vision is that crises of confidence can happen rapidly, with little warning. Loading the player China has been steadily accumulating US treasury securities for decades. -China Relations Getting. The Asian nation owns so much already that a wholesale liquidation of Treasuries would only hurt. Treasuries would, in effect, flood the bond market, which would impact the U. For the first time, Puerto Rico missed a bond payment Saturday, a major setback for the U. Treasury bond portfolio by China would push up U. Recall that China sold US treasuries to support the Yuan and stop capital flight. government's ability to issue new debt at the low interest rates it desires, forcing up the cost of all its new borrowing. 18 trillion holding. But for Trump, a low dollar is the way to bring jobs back to the US after many were exported abroad to take advantage of lower labor costs, and therefore rebuild the US manufacturing sector, primarily, through cheaper exports. and slowing growth have taken a toll on Chinas economy. But if you happen to own oil stocks, the answer is a resounding no. No way to create replacement - the trust is a reason dollar is no. US Dollar May Sink if China Dumps Treasury Bonds. government debt? The world's second-biggest economy also is the world's largest holder of U. When a bond's price goes down, its interest rate, or yield, increases. The People's Bank of China points at it in its data releases on its foreign exchange reserves. financial system. But I suppose China could buy could be gold or US equities. We have no proof this going to happen this year or next, but all the signs are pointing in that direction. 32 trillion and that its foreign exchange. government bonds, in other words, Beijing would leave the United States either unchanged or better off, while doing so would also leave China either unchanged or worse off. Here are five scenarios that could happen now that the natural gas ETF is trading like a closed-end fund with a huge premium. Treasuries. 33 trillion at the end of 2013. Russia, on the other hand, does not export much to the US. And the perennial threat that China would sell its Treasuries. In the wake of speculation that China, which has acquired a huge amount of U. “It’s a declaration of war — not just against the United States, but the world,” he says. China's sell-off of U. Making it more expensive for the US to borrow. I expect tomorrow could be just as bad if not worse than today was. Famed investor Bill Gross, who runs the PIMCO Total Return Fund, recently sold all of the US Treasury bonds is his fund’s portfolio. China dumping US Treasuries and then selling the dollars it gets for other currencies would also put downward pressure on the USD - which is the exact opposite of what China wants, to help. The uncertainty in markets has pressured investors to dump equities and seek safety in U. Join now!. With the huge trade imbalance, if China starts dumping US bonds, as I hear rumours some Arab and other Muslim countries have been doing, what will be the effect on the US (and China?) and why might China do this?. BOND YIELDS SEESAW Fears of a trade war have. commonwealth’s 3. 18 trillion holding. BOND YIELDS SEESAW Fears of a trade war have. Adelaide police say two men turned up to a victim's house with an eftpos machine. 16 trillion in US debt (US government treasury bonds). China cut its holdings of Treasury notes and bonds by the most ever in June, instead favoring the debt of Europe, Japan and Korea. These countries include Russia, China, India, and even Germany, France, and the United Kingdom. A devaluation is another matter. debt holdings, causing panic. government bonds: US Treasury yields plunged to their lowest level since 2017 and shares fell more than 1 per cent on Thursday as the deepening trade dispute between the US and China raised. This makes the lower rates on old bonds less attractive. Listen to thousands of live radio stations or create your own artist stations and playlists. That is not going to happen. what happens if the importer knows the items are subject. This, in response to new tariffs of 10% on $300 billion. shale producers pumped oil out of the ground as fast as they could. 5bn) worth of US government bonds in December, raising fears that ­Beijing is using its financial ­muscle to signal that it has lost confidence in American economic policy. To name a few, China could exercise the “nuclear option” of dumping U. This, in response to new tariffs of 10% on $300 billion. While we admit that "suddenly" is not exactly the right word to describe China's selling of US Treasurys, which has been steadily liquidating its UST reserves over the past two years, something changed today, when in a violent move starting around the time of the Trump election was guaranteed after midnight, the offshore Yuan, the CNH, has been a one way street of non-stop selling, indicative. May 13, 2019 · If China Sells Its U. China claimed they were not “dumping the dollar” on purpose. It's not just a reaction to Donald Trump and possible stimulus though. The fact that we are indebted to one of our biggest competitors on the global stage, does not bode well for our future. The US Dollar is likely to plunge if China deploys the “nuclear option” in its trade war with the US, selling its Treasury bond holdings. This makes Treasury bonds among the world's safest investments. 18 trillion holding. A countries socioeconomic wealth is a much bigger. 4 billion in May 2009 to $5. Most worry that Xi Jinping’s government will dump US debt to hurt America. Right now, demand is strong and OPEC has been holding back production to prevent a glut that will really keelhaul. debt even before this latest crisis. Once the Biggest Buyer, China Starts Dumping U. needs China to keep buying its debt. "Well, I think that one of the things that needs to happen is for Lyft to not have a lot of sellers. However, according to The South China Morning Post, China has its own "range of financial firepower at its disposal to punish the US" for the tariffs war, including its massive $1. More from Global Investing Hot Spots: Tesla and China trade war Reaching for yield in this bond sector may be risky If China did decide to sell off those bonds in a fit of rage aimed at President Donald Trump, then it could cause major havoc on international markets,. What Happens When the US Fed Dumps $4. 1 day ago · China told the WTO in September, 2018, that it had suffered US$7. They have been selling bonds for months. 9-trillion US Treasuries market. Xero connects you to all things business. One default might increase the borrowing costs for all future bonds as investors rationally price in such possibility. China should reduce its excessive foreign exchange reserves and further diversify its holdings, Tang Shuangning, chairman of China Everbright Group, said on Saturday. “It’s a declaration of war — not just against the United States, but the world,” he says. China Dumps Treasuries As The Central Bank Begins The Campaign To Collapse The Economy Housing starts crash in December and November was revised lower. 13 trillion worth as of February 2019, and should they sell them, economists say that could cause a ripple effect in the U. Gross is a billionaire bond veteran and someone who's been quite bullish in the past. Such a sale would be aimed at hurting the value of US Treasuries, thereby causing yields to spike. China still remains the biggest foreign holder of US Treasuries, however, followed by long-time US ally Japan. Treasury securities increased by $12. Treasury bonds dumped on the market was so overwhelming, even the Federal Reserve, with all its massive efforts to buy up bonds, could not stop the avalanche. The data from the US Treasury Department points at it. It’s the same for our economy, but our policy makers just don’t get it. Price are down by a third since October, to $52 per barrel. Yet what is not going to happen from the China tariffs is a material reduction in the $800 billion US trade deficit, nor any material return of production and jobs to the US. Also the long term credit issue. government bond prices would. China's holdings of U. Impact of Chinese Dumping on world markets. China has built factories and economic infrastructure all over South America, Africa, and Asia for many years. All the US majors pushed back above their 50DMAs… Morgan Stanley - like every other major - saw terrible FICC performance, but had no redeeming features to spur a bounce and that rather spoiled the party for financials… The big question is, what happens next? Bond yields jumped on the day and did not retrace on the denials…. the BRICS and other emerging market nations have been dumping euros assiduously because. 5 trillion in FX reserves (i. What If China Dumps US Treasury Bonds? Please, give me one coherent explanation of how that could happen. China and Russia have already begun using the U. But that's not the lesson to. borrowing rates soaring. government bonds as a source of leverage that could eventually be utilized when diplomatic relations between the two largest economies in the world break down. China's play could also draw the wrath of other large bond. China's US$1. If China starts dumping our dollars and our debt, much of the rest of the planet would likely follow suit and we would be in for a world of hurt. China, especially, holds some $1 trillion - the expanded US dollar supply. If that happens in the property market, Canadians will not like the feeling. But it cannot do so without tanking the value of its own reserves. "The validity of the. 123 trillion piggybank of US Treasury bills. 2 trillion weapon that could be used in a trade war with the US. 18 trillion holding. This happens in real life. Combined Russia and China Treasury Holdings Hit 9 Year Low As they Keep Dumping US Stocks. The Asian nation owns so much already that a wholesale liquidation of Treasuries would only hurt. In a recent US-China Business Council survey, 25 percent of firms reported increased scrutiny by regulators and greater barriers to entering the Chinese market. China buying US Treasuries was never a favour to the US, it was a way to manipulate their currency down. 10-year Treasury bond yields by up to ½% and U. bond prices also would bring down the value of China. This means that if foreign purchases of Treasury bonds had any effect on US interest rates separate from the currency channel, it would have shown up in the form of a steeper yield curve caused by. Fears are growing that Beijing might use US bonds as means of retaliating against the US tariffs imposed by President Donald Trump. This would happen as the Treasury. There are still at least 3 buyers for every US T note available. In short, the American government debt that China bought was the cost of maintaining a trade surplus with the US. 7% this year as strong foreign portfolio investor (FPI) inflows, coupled with significant foreign direct. Not to mention that China dumping US government debt would only serve to reposition the US deficit by shifting capital flows elsewhere. It marked the first time since 2007 that 10-year bond yields fell below 2-year yields. Meanwhile, US can always offset it with a few rate hikes if needed. This doesn't strike me as a policy Beijing is likely to pursue hotly, and Washington would certainly not be opposed to it. Treasury market. Also the long term credit issue. China owns a lot of this type of bonds. It is the lowest level for the country since February last year. Wanda called reports that some Chinese banks were ordered to sell its bonds "malicious speculation. Currency intervention, also known as foreign exchange market intervention or currency manipulation, is a monetary policy operation. Will It Happen? - The US-China trade war is a fundamental headwind that is continuing to blow the sails of the global economy increasingly closer to a rocky coastline. As a result, in recent years, China's holdings of Treasury bonds have increased rapidly, according to federal government data, expanding 2. Maybe not with bonds per say, but certainly with the markets in general and at this point the only one buying US Treasuries on a grand scale is the Federal Reserve itself! This all happens as Bill Gross of Janus recently said that bonds are in a bear market. Supposedly Uncle Sam is at the mercy of the Chinese, who have a stranglehold on the supply of dollars necessary to keep the US government above water. 23 , called for a new “super-sovereign reserve currency” to replace the current reliance on the dollar. Consider it China's nuclear option in the trade war with the U. Turmoil would ensue if China started dumping US Treasury securities. On Tuesday evening, we asked what would happen if emerging markets joined China in dumping US Treasurys. China Threatens to Quit Buying US Treasuries, Cites "Trade Tensions" by Wolf Richter • Jan 10, 2018 • 83 Comments • Email to a friend A financial shot before the bow of the White House. Back in July for instance, we noted that China had dumped a record $143 billion in US Treasurys in three months via Belgium, leaving Goldman speechless for. government bonds. Treasury bills, decreasing its ownership of the short-term U. Treasuries? One of the big questions now being debated is, "What would happen if China were to dump its entire. com for Every Day Low Prices. Many see China’s accumulation of U. IS YOUR RESUME A BARRIER TO YOUR NEXT JOB? Open Doors with a Well-Written Resume. For the first time, Puerto Rico missed a bond payment Saturday, a major setback for the U. agriculture. But that's not the lesson to. All those dollars in foreign accounts will come home,. Our deficit hysterians love to raise the specter of China. Maybe not with bonds per say, but certainly with the markets in general and at this point the only one buying US Treasuries on a grand scale is the Federal Reserve itself! This all happens as Bill Gross of Janus recently said that bonds are in a bear market. One fear has been that, should China and the United States engage in an economic war — as they clearly are now — those dollars could become a weapon against us. Xero connects you to all things business. In short, the American government debt that China bought was the cost of maintaining a trade surplus with the US. Shedlock details the possibility of China dropping US Tresuries. The body of the article uses that word "weaponise" (British spelling). The bottom line is that since China has become a net seller of Treasuries, liquidity has dried up. For instance if selling US T Bonds causes US rates to rise they might sell into the current weakness. The latest blast from Beijing: a call byChina‘s top central banker to dump the U. In short, the new currency regime has led the PBoC to dump more US paper in the past two weeks than it had YTD. As of mid-February 2014, the MSCI Emerging Markets Index was. That has been shown to be the case throughout U. 13 trillion worth as of February 2019, and should they sell them, economists say that could cause a ripple effect in the U. China holds a lot of U. Treasurys in retaliation over trade because there’s plenty of demand for U. 18 trillion holding. If anyone wanted to take down the dollar, it is the Chinese and Japanese who could do it. Navy Federal Credit Union is an armed forces bank serving the Navy, Army, Marine Corps, Air Force, Coast Guard, veterans, DoD & their families. The private company’s bond still promises $102 in a year, but the bank, having sold a government bond for $101 and bought a private bond for $100, also gets to pocket the difference of $1. 4 billion in May 2009 to $5. Treasury bonds dumped on the market was so overwhelming, even the Federal Reserve, with all its massive efforts to buy up bonds, could not stop the avalanche. If the other EMs join China in liquidating the combined $7. China has sold billions of dollars in US Treasury bills for the second month in a row, even as strong buying from other foreign investors countered Beijing's move to reduce its holdings. This has allowed America to print money without restraint to buy imports and foreign companies, fund our military expansion and ensure that foreign nations like China continue to buy our treasury bonds. 32 trillion and that its foreign exchange. 1 trillion, would fetch far less as the fire sale caused bond prices to drop—a 5 percent price decline, for example, could. World Dumping US Debt & Hoarding Gold: De. 32 trillion in late 2013. As of June 2012, the Chinese owned $1. Treasuries? One of the big questions now being debated is, "What would happen if China were to dump its entire. US Dollar May Sink if China Dumps Treasury Bonds. financial system. Trump dumps Iran nuclear deal: What you need to know The United States, the United Kingdom, France, Russia and China, plus Germany -- and Iran. And for someone to win £1m,. He knows this and has threatened tariffs on almost all of the $524 billion in annual Chinese imports to America. A: Russia has sold all but $15 billion in US Treasuries without any affect upon the dollar or bond sales. Between March and May, Russia's holdings of US Treasury bonds plummeted by $81 billion, representing 84% of its total. "It's a declaration of war — not just against the United States, but the world," he says. Treasury securities in October - the biggest seller for the month - bringing its total holdings to $1. Once the new system is in place, our dollar won’t be needed in these countries and a new reserve currency will come into being. The Asian nation owns so much already that a wholesale liquidation of Treasuries would only hurt. Market analysts think China is unlikely to make a move that would harm. However, according to The South China Morning Post, China has its own "range of financial firepower at its disposal to punish the US" for the tariffs war, including its massive $1. In this hypothetical scenario where foreign governments counter Trump's aggressive trade stance by dumping their US Treasury and US dollar reserves, any US imposed trade barriers will only further lessen the appeal and utility of the US dollar. Dumping its U. terrorist sue the Saudi government Abandon the dollar Observers Saudi economists said that the establishment of a system of direct exchange rates between the currencies of the Chinese yuan and the Saudi riyal Index for China's purchase of Saudi oil in its own currency in the future, while the US dollar will be affected by this. 32 trillion and that its foreign exchange. Imagine what would happen if China tries to buy any major US company or assets with their US. This is part 2 of our “Global Dollar Dump” article series. If Chinese investors stop buying U. China: After already dropping the dollar peg in 2005, China has more trouble up its sleeve. Here are five scenarios that could happen now that the natural gas ETF is trading like a closed-end fund with a huge premium. In an attempt to better manage its debt of over 1 trillion ringgit, Malaysia has also cancelled or delayed several infrastructure megaprojects, including the High Speed Rail between Singapore and Malaysia, and several China-backed gas pipeline projects. People’s Bank of China Governor Zhou Xiaochuan, in a paper released on the bank’s Web site on Mar. debt, it would be an absolute nightmare for the U. In addition, even if it did cause market volatility, China’s remaining holdings would also be hurt, which the Chinese may view as a move that is too risky. May 10, 2019 · For starters, China could fire back by dumping its vast holdings of U. This is why people say "The U. interest rates spiking higher, just when Trump's administration is borrowing more. Investors Aren’t Dumping Gun Stocks Following Mass Shootings Shares of gunmakers Vista Outdoors and American Outdoor Brands jumped 2% Monday, while shares of Sturm, Ruger & Co rose as much as 4% before forfeiting its gains, closing the day down 2% Monday. China has built factories and economic infrastructure all over South America, Africa, and Asia for many years. Estimated foreign holdings of U. This piece will help you understand some of the factors behind the. This action “would slow but not derail the US recovery. anti-dumping. The tower, emanating from the Lotus Sutra in Buddhism, is a narrative for Beijing to formulate a sustainable and peaceful “soft power” strategy. While we admit that "suddenly" is not exactly the right word to describe China's selling of US Treasurys, which has been steadily liquidating its UST reserves over the past two years, something changed today, when in a violent move starting around the time of the Trump election was guaranteed after midnight, the offshore Yuan, the CNH, has been a one way street of non-stop selling, indicative. India doesn't export much to the US. This, in response to new tariffs of 10% on $300 billion. You can hold Treasury bonds until they mature or sell them before they mature. 1 and if US will dump its debt and default, then some other currency will take over, despite military might. China dumping US Treasuries and then selling the dollars it gets for other currencies would also put downward pressure on the USD - which is the exact opposite of what China wants, to help. But the crucial point, which Mr. The effect of multiple attacks, exploiting U. Despite its threats, China will continue to be one of the world's largest holders of U. US Dollar Will Devalue by 20% to 30% (FREEPOM) China has demanded that the Fed does not raise interest rates as this would further strengthen the dollar and put even more pressure on the yuan. The western world can struggle along without China but the current Chinese regime would fall in a bloody heap without the rest of the world propping it up. bonds has periodically resurfaced for as long as most market participants care to remember. it's a much bigger problem for China than it is for us. There are still at least 3 buyers for every US T note available. The fact that we are indebted to one of our biggest competitors on the global stage, does not bode well for our future. businesses. Main Street US will naturally suffer from loss of purchasing power if the dollar declines. bond prices also would bring down the value of China. Imagine what would happen if China tries to buy any major US company or assets with their US. China and Japan ratcheted up pressure on the US to avoid an unprecedented US default on its debt as Democrats and Republicans continued their stand-off over the budget in the second week of a US. Treasury bills and messing with the U. government data. Preparing for Increased AD/CVD Enforcement in the U. 123 trillion piggybank of US Treasury bills. An Australian judge sentenced a man to 36 years in prison on Tuesday for the murder and rape of an Israeli student whom he bludgeoned into unconsciousness moments after she stepped off a tram in Melbourne before setting her corpse on fire. A devaluation is another matter. Treasuries? One of the big questions now being debated is, "What would happen if China were to dump its entire. Open a Walmart Credit Card to Save Even More!. “It’s a declaration of war — not just against the United States, but the world,” he says. Other nations hold on to them because they are confident in the dollar's stability, others even peg their currency against it. But greenbacks weren't backed by gold or silver. Before they sold these, they devalued their yuan by about 5% which is the same thing as making their dollar holdings worth 5% more in yuan …so they increased their sale by the equivalent of $5 billion!. What would happen to the Dow and S&P 500 if yields spiked because China started some heavy profit taking? What would that do to Trump politically? What would it do to the Fed's ability to administer monetary policy by managing rates? China still owns over a trillion dollars in Us Treasury bonds. Russia sold $5. 716 billion. The dollar would tank, further adding to the purchasing power of the Chinese to buy the goods they make. "US stocks fell as investors sold stock in companies and moved it into bonds. Then there is the matter of the debt, which requires huge amounts of cash infusions from countries like China, buying US bonds, to stay afloat. Moscow's big sell-off reportedly was not so crucial for the $14. Whatever happens in China, the chances are remote the country will dump its U. Rather than dump their $1. If China stopped buying US treasuries, it would cause a few effects: Upward pressure on US interest rates. For those trying to plan for major purposes, that's comforting. Listen to thousands of live radio stations or create your own artist stations and playlists. economy would also be felt in China because the United States is the destination for nearly a fifth of Chinese exports. China's sell-off of U.