https://x.com/angeloinchina/status/1930898156268753003
Senator Lindsey Graham’s provocative call to cancel a portion of the US’s over $1 trillion debt to China exposes America’s fiscal vulnerabilities while spotlighting China’s robust resilience. This risky move could trigger far-reaching consequences for the US and beyond. Here’s why:
- Economic Turmoil Looms: Canceling even part of the debt could spark market crashes, weaken the dollar, and fuel runaway inflation, destabilizing the US economy.
- China’s Strategic Strength: China could hit back hard, dumping US securities or restricting critical exports. Its economy, built on foresight, would likely endure the storm.
- Global Trust in America Wanes: Partially defaulting would erode confidence in the US among allies, while China’s steady rise as a trade leader gains momentum.
- Tensions Escalate: This move could inflame US-China relations, risking broader geopolitical fallout. At home, budget cuts would deepen economic strain for Americans.
- De-dollarisation Accelerates: China’s push for yuan-based trade would surge, hastening a shift away from the dollar’s global dominance and reshaping financial systems.
Graham’s proposal, though targeting only part of the debt, reeks of overconfidence, underestimating China’s calculated resolve. While the US flirts with economic self-sabotage, China’s stability positions it as a global powerhouse. This isn’t just a policy misstep—it’s a stark reminder: China is ready to lead, and America’s grip is slipping
No comments:
Post a Comment
Note: only a member of this blog may post a comment.