A lot has changed over the past decade
Good morning Chris. I was thinking that maybe Russia’s plan never was to go in and dominate Ukraine in a few days. Maybe I am wrong. A million things run through my head about what is happening.
I was organizing my saved articles over the years and came across this one. Do you think China could weaponize the US treasuries they hold ? You are the expert on that. What if they stop trading with us? I think we all know how much is made in China.
Here was my response:
China hasn’t really added to their Treasury holdings much over the past several years, and if CCP sold, the Fed could easily buy them all up via QE without major disruption in the bond markets.
As we can see, China no longer holds a huge percentage of USTs vs. total outstanding anymore. That was taken care of when the Fed stepped in via quantitative easing. This is just an observation; QE has benefited the USG in another way as it helps to isolate the United States from foreign domination in the US Treasury markets. In some regards I can consider QE a national security issue and imperative. Currently, the United States is much less exposed to adverse foreign intervention in the bond markets than before QE, including Russia and China.
China could lose out substantially if it decided to go this route right now and dump its UST holdings. While the FED is tightening, the PBOC is stimulating. This would not serve China as it will soon be accelerating its military spending, and dumping USTs now could possibly roil their bond markets.
With regards to international trade, China currently has much more to lose from a unilateral severance in trade relations with the United States than the U.S does. China is attempting to build up their military and need the USDs to flow into their coffers. Alex Jones is totally wrong in this regard. China cannot convert its yuan into a global reserve currency. Take a look at Russia under this regime of sanctions; Russia is getting crushed here and has overestimated its strength. The CCP is taking note and proceeding with caution.
I am in agreement with you here; there are many outcomes to be considered. I’m trying to figure out if Russia could benefit from this current outcome. All I know is is that It embarrasses them. Russia is a very insecure country as is, because it has always played second fiddle to the West. Perhaps this insecurity is being played upon by the US Globalists to lure the Russians into harshly retaliating. The longer the Ukraine conflagration rolls on, the more harshly Russia will eventually have to respond.
Please note; I see all the above analysis as proof that Russia/China will eventually be forced to resort to some sort of catastrophic means to subdue the US. The USD-based system is devilishly stable.