China just reminded the United States that Beijing is its ... biggest debt holder.
This is not a "sky is falling" moment, but it is a not so subtle reminder that financing the debt (which we continue to run up like there will be no tomorrow) is subject to market forces. The federal government cannot force others to purchase US T-bills.
China sent a message yesterday that they are a major purchaser of debt and if we do not back off of threats to impose tariffs for bad Chinese behavior, they can stop buying US debt entirely.
Just a moment of sober thought.
This is not a "sky is falling" moment, but it is a not so subtle reminder that financing the debt (which we continue to run up like there will be no tomorrow) is subject to market forces. The federal government cannot force others to purchase US T-bills.
China sent a message yesterday that they are a major purchaser of debt and if we do not back off of threats to impose tariffs for bad Chinese behavior, they can stop buying US debt entirely.
Just a moment of sober thought.
