ELI5 Why is china dumping US treasuries a bad thing? Doesnt that just transfer ownership of the deby?
In:
It’s not bad if they sell some. It would be bad if they tried to sell all of what they own.
It’s supply and demand. And China has a lot of supply (they own a lot of treasuries). If they tried dumping all of it, it would lower the value of the treasuries. And that would definitely affect the US. It would also affect China negatively. And it would affect the world’s economy negatively.
It won’t happen.
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