Actually, another option would be a "leak" that they were "considering" dumping bonds.Yeah, no doubt it would not be good for them from a purely financial standpoint, but (theoretically) it might be worth the pain.I also wonder if there might be a point at which China is willing to drop the hammer and get punitive by dumping a trillion or so in Treasuries.
I think China is viewing that as a break-the-glass, last resort move since it's a lose-lose (lose-lose is OUR thing not theirs).
I don't think they really want to do that, but yeah, I can see it as a "break the glass" tactic.
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Yes but IMHO they can achieve the desired effect by simply cutting back on their purchases of U.S. Debt, which they've already started to do, and that strategy doesn't carry as much risk that Washington will push the Warhawk Panic Button.
It sends the message without SHOUTING.
Just doing that would send shockwaves and send a message.
Who knows. This is an asymmetrical situation - A President has to worry about politics and they don't.
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