Will China Dump Dollars When U.S. Fed Eases Interest Rates?

Will China Dump Dollars When U.S. Fed Eases Interest Rates?

The Liberty Beacon Staff

China has amassed a huge amount of US treasury notes, bonds and bills, and if they need or want to dump a large quantity, it could have a catastrophic effect on America’s Economy as to the Global Dollar. 

The Chinese will also not want to do a massive sell off all at once because that could also push-back on their own economy.

There is a lot to consider:

Lowering its exposure to US debt 

Engage in a war over the issue of Taiwan

US and its allies pre-empt any moves by China with heavy sanctions

Freezing China’s dollar assets and access to the international banking system.

China may have no choice, as the U.S. Fed looks like it is bowing to political and other pressure to start easing interest rates ahead of the U.S. November election..  

Asia Times reports…

Eurizon SLJ Capital predicts that Chinese companies to shed at least $1 trillion in dollar assets as repatriating capital heads China’s way.

The US Federal Reserve has a rather checkered history in Asia, particularly since the mid-1990s. The last time the US central bank tightened with the ferocity it did in recent years was between 1994 and 1995. That doubling of short-term rates within 12 months paved the way for the 1997-98 Asian crisis as a runaway.

Behind Asia offers some additional analysis on China’s increasing de-dollarization efforts.

***********

(TLB) published this article as written and compiled by The Liberty Beacon staff with additional reporting and analysis from Asia Times and Behind Asia

Header featured image (edited) credit WP open public file

••••

••••

Stay tuned tuned…

••••

The Liberty Beacon Project is now expanding at a near exponential rate, and for this we are grateful and excited! But we must also be practical. For 7 years we have not asked for any donations, and have built this project with our own funds as we grew. We are now experiencing ever increasing growing pains due to the large number of websites and projects we represent. So we have just installed donation buttons on our websites and ask that you consider this when you visit them. Nothing is too small. We thank you for all your support and your considerations … (TLB)

••••

Comment Policy: As a privately owned web site, we reserve the right to remove comments that contain spam, advertising, vulgarity, threats of violence, racism, or personal/abusive attacks on other users. This also applies to trolling, the use of more than one alias, or just intentional mischief. Enforcement of this policy is at the discretion of this websites administrators. Repeat offenders may be blocked or permanently banned without prior warning.

••••

Disclaimer: TLB websites contain copyrighted material the use of which has not always been specifically authorized by the copyright owner. We are making such material available to our readers under the provisions of “fair use” in an effort to advance a better understanding of political, health, economic and social issues. The material on this site is distributed without profit to those who have expressed a prior interest in receiving it for research and educational purposes. If you wish to use copyrighted material for purposes other than “fair use” you must request permission from the copyright owner.

••••

Disclaimer: The information and opinions shared are for informational purposes only including, but not limited to, text, graphics, images and other material are not intended as medical advice or instruction. Nothing mentioned is intended to be a substitute for professional medical advice, diagnosis or treatment.