Japanese Finance Minister Kato Katsunobu has said US government bond holdings could be one of the country's bargaining chips in tariff negotiations with Washington.
How? Trump is explicitly trying to weaken the dollar. Selling US treasuries would help his stated goal — one of the few I believe he’s sincere about.
Ditto China.
And refusing to buy new treasuries would be an empty threat to a fiat currency issuer. The US could never sell another treasury bond again and still operate.
I hate Trump, but this isn’t the flex anyone thinks it is.
How? Trump is explicitly trying to weaken the dollar. Selling US treasuries would help his stated goal — one of the few I believe he’s sincere about.
Ditto China.
And refusing to buy new treasuries would be an empty threat to a fiat currency issuer. The US could never sell another treasury bond again and still operate.
I hate Trump, but this isn’t the flex anyone thinks it is.