Re: Trade war take
I guess the question would be why does China own trillions in Treasuries then
I think the treasury they own is part of their foreign reserve and it is heading down since 2014. Mechanically, if China is selling their currency to push down the exchange rate, they should receive foreign currency in return. That means their foreign currency reserve should go up and not down like it did since 2014. it is like the tulip story or any dead spiral company do. If China keep selling their currency to push the exchange rate down, they will find less and less taker. At the end, no one want to take Chinese currency because everyone has too many of it... remember China is cutting their rate now, so their currency should be heading down....