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RE: The US trading war with China - Is China up for a financial crisis?

in Project HOPE2 months ago

If USA tries to freeze China's holding in USD, China will just cash all their debts immediately and demand them in something else than USD... That will collapse US economy even though China has dropped already to third place. USA doesn't have enough foundries to build electronic chips so pretty much all manufacturing of electronics will cease.

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I also have the feeling that China is to strong to be joked with... as a result, they will always manage to beat back at USA in a way that makes them feel sorry about what they did (if they decide to take sanctions).

I've always said China and Norway are the two strongest countries in the world... Norway, because their currency is backed by large surplus of oil.

 2 months ago 

why would this collapse their economy @mtl1979 ? why would it actually affect US more than printing recent trillions of usd?

Because USA can't print other currencies from thin air... if China claims that USD is worth nothing and USA needs to buy something, they need to sell something to get currency that is worth more than USD.

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