Does China OWN The United States? Chinese Trade War 2.0

TL;DR

China's ownership of US national debt poses a potential economic risk to the United States in the event of a trade war or if China were to sell off its holdings.

Transcript

with talks of another potential trade war with China have you ever wondered how China could potentially fight back economically what's up everybody I am just buddies Singh and welcome to the minority mindset the world has been talking about China a lot lately first it was the protest in Hong Kong then came this pandemic now it's potential tariffs a... Read More

Key Insights

• 🇺🇸 The United States national debt is growing rapidly due to stimulus measures.
• 🥹 The US dollar is not backed by tangible assets, making it vulnerable to inflation.
• 🈷️ China and Japan hold large amounts of US debt, posing a potential economic risk.
• 🥹 Selling off US debt holdings by China could devalue the US dollar and harm the economy.
• ⏮️ Previous attempts by Russia to convince China to sell off US debt were unsuccessful.
• 🫱 The threat of a trade war or economic attack increases the risk of China selling off US debt.
• 💄 The current state of the US economy, with a looming recession, makes the risk of debt ownership even more concerning.

Questions & Answers

Q: How is the United States national debt growing so rapidly?

The government has been providing stimulus checks, bailouts, and loans, causing an increase in the national debt.

Q: What is the risk of inflation?

When the supply of dollars increases, the value of each individual dollar decreases, leading to higher prices for goods and services.

Q: Who owns the majority of US national debt?

China and Japan hold the largest amount of US debt, with trillions of dollars in holdings.

Q: What could happen if China sells off its US debt?

If China were to sell off its holdings, it could devalue the US dollar and harm the US economy, similar to what happened during the 2008 recession.

Summary & Key Takeaways

• The United States national debt is growing rapidly, largely due to stimulus checks and bailouts. The US dollar is not backed by gold or silver, making it susceptible to inflation.

• China and Japan are the main foreign governments that own US debt, with trillions of dollars worth of holdings. If they were to sell off this debt, it could devalue the US dollar and harm the economy.

• In the event of a trade war or economic attack, China could potentially unload its US debt holdings, causing further damage to the US economy.