- cross-posted to:
- worldnews@lemmygrad.ml
- worldnews@lemmy.ml
- cross-posted to:
- worldnews@lemmygrad.ml
- worldnews@lemmy.ml
China sold a record $53.3 billion of US Treasury and agency bonds in the first quarter of 2024, likely due to escalating trade tensions and a desire to diversify its assets. This move is raising concerns as China is a major holder of US debt and its actions could impact the US economy. Additionally, China has been increasing its gold reserves, potentially as a way to mitigate sanctions risk.
https://archive.ph/6f6XN
I am not an expert here but naively finance seems like it would be the most vulnerable to a shrinking economy. That's why I'm thinking this makes no sense because if you maintain good relations maybe you can keep the party going for another decade or two before you have to deal with reality.
A shrinking real economy is not as big of a problem for the American ruling class as you might think. Their lifestyles will remain comfortable no matter how much the economy degrades. Their only worry is maintaining power for themselves, and that requires them to make moves that are economically irrational.
Maybe it's more vulnerable but by the time that's a problem the profit will already be somewhere else and then whoever gets the short end of the stick will get a taxpayer bailout as a consolation prize. They're not doing economics, they're gambling with other people's money.