Cancelling China's Treasuries

AussiePete

Mish, regarding the issue of Trump threatening that China will pay a big price for their handling of the coronavirus, what do you think of Jim Rickards comments that the US could, through due process of law, get a judgment against China for the estimated $4 trillion of damage to the US economy and simply cancel the $1.4 trillion of treasury notes held by China?

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(31m.15s)
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Comments (10)
No. 1-4
Curious-Cat
Curious-Cat

I think if he tried to do that, even beginning the process, that no other country would ever trust us again.

Casual_Observer2020
Casual_Observer2020

The dollar would crash overnight and gold would go to $10000 an oz.

Snarla Hazard
Snarla Hazard

What court can deliver a judgement against a country? This is grade school nonsense.

Eddie_T
Eddie_T

Rickards basic assumptions about the future are highly unlikely, They ignore the reality of how the entire wealth of the planet is tied up in and dependent on the US and our Treasury market.

Rickards has been beating the same drum for many years. I've read some of his books. His basic assumption is that China's currency will become the worlds reserve currency and that some kind of gold-backed Chinese bond will kill our bond market.

There are so many reasons this is never gonna happen. Rickards is a gold bug talking his book, just like Peter Schiff and many others.