By Mac Slavo
China has just dumped its biggest load of United States treasuries in 8 months. China’s share of US Treasuries holdings had the highest decline since January back in September, as the ongoing and ever-increasing trade tensions with Washington forced the world’s biggest economy to take measures to stabilize its national currency.
And in order to stabilize their own currency, the Chinese will take shots at the U.S. dollar. Although the country is still the biggest foreign holder of the U.S. foreign debt, China has slashed its share by nearly $14 billion, with the country’s holdings falling to $1.15 trillion from nearly $1.17 trillion in August, according to the latest data from the Treasury Department. The fall marks the fourth straight month of declines, according to a report by RT. China is followed Japan’s lead, as their share of U.S. Treasuries fell to $1.03 trillion, the lowest since October of 2011.
Other nations are divesting from the dollar as well making the U.S.’s currency highly unstable. China’s purchase of U.S. has fallen as the U.S. continues to borrow increasingly more money. And with a newly divided Congress, it doesn’t look like the deficit will decrease anytime soon and the trade war is likely to
This latest drop in purchases of U.S. debt comes on top of the escalating trade conflict between Beijing and Washington over a trade imbalance, market access, and alleged stealing of U.S. technology secrets by Chinese corporations. So far, the US has imposed tariffs on $200 billion of Chinese goods and Beijing retaliated with tariffs on $60 billion of US goods and stopped buying American crude. But if a deal is not reached, tariffs will rise sharply, to 25% in January.
The ever-increasing national debt, and inflation, coupled with the trade war Americans are already paying for could put untold pressure on an already unstable economy.
As we inch toward the first of the year, Americans will be forced to fork over even more cash to cover the political whims of the ruling class. Absent a deal between Trump and Chinese leader Xi Jinping, who are expected to attend a G20 summit this month in Buenos Aires, the recently introduced 10 percent tariffs on $200 billion of Chinese goods will be raised to 25 percent. Additionally, the Trump administration may place other tariffs on the remaining $250 billion-or-so of Chinese products which escaped the initial rounds. –SHTFPlan
On Friday, president Donald Trump said he would leave out “four or five” of the big items the U.S. wants from the trade war negotiations. “China wants to make a deal. They sent a list of things they are willing to do, which is a large list and it is just not acceptable to me yet. But at some point I think that we are doing extremely well with respect to China,” Trump told reporters, according to RT.