According to Jim Rickards, it is highly likely that the U.S. will launch a preemptive economic strike against China – freezing and then seizing China’s $1.4 trillion of Treasury notes.
Then, of course, China will retaliate.
In the article below, read what China can and cannot do in retaliation, as Jim Rickards sees it.
China is getting aggressive with its opening up of government bonds for investment.
This has been happening for a very long time and it is natural, given the economic potential. But I also wonder how it will end. And will it end at all?
They compete, and we earn…
I think everything is going very well…
Biden is now in the leading position to win the US Presidential election, and hopes are stirred that US policy will reorient towards supporting a rule-based international order.
This should keep a lid on policy uncertainty and also ease trade tensions somewhat, even if no immediate action is taken on the existing Trump tariffs.
No doubt, US-China rivalry will continue to play out in many dimensions, but a renewed respect of international rules may just go a long way to keeping tensions in check.