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China’s “nuclear option” in trade war

Tarwheel
in The Bullpen
Interesting story in the NYT about the potential for China to use the “nuclear option” in the trade war with the US — that is, selling its huge stake in US Treasuries. Now that would really cause interest rates to spike.

The Unknowable Fallout of China’s Tradewar Nuclear Option

China holds more a trillion dollar in US debt, and an escalating trade war could tempt it to wield that debt in a way that has long been thought unthinkable.

https://nyti.ms/2C53xYr

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