sold over 20 times what they wanna sell. giving same interest as the fed. but US own bond no ppl want buy, ccp US bond everyone wanna büy. why? because they know ccp can payback.

now ccp become middle man for US dollar/bond.

they just got too much usd in hand from trade surplus

most of the countries trade in usd, and owing debt in usd too. now china use their usd on hand to help pay the usd debt of other countries, provided the other countries give them the raw material. like this US if want to use the trick of raising/lowering interest to make those debt owner go broke will be unlikely because china gonna pay for them in usd back to US, and they can get back raw material from those countries

they also selling usd bond to collect usd back. this way countries with surplus trade like saudi those, can buy from china instead of murica on US bond, which make US bond even less attractive. so if US wanna sell more bond they have to raise the interest, but if ccp kacau following them to raise interest, then US debt ceiling will increase rapidly. rheir 1 year debt interest repayment will be higher than their military budget next year.

in short, ccp is acting like a middle man taking the benefit of usd currency. kek

This post has been edited by darkterror15: Nov 23 2024, 08:59 AM