China reduced its holdings of US government debt by the largest margin in nearly nine years in June, according to data from the US Treasury.
China holds more US government debt than any other country and cut its holdings of US securities by more that 3% in June, said the BBC's Chris Hogg.
The handwriting is on the wall but many Americans are illiterate. One by one, the U.S.'s foreign creditors will decline to buy our Treasury bonds. One by one, they will choose to stimulate their own economies and not ours. One by one, they will pursue autarkic programs and leave the U.S. to its fate. There is no need for another Smoot-Hawley tariff this time around to drive global trade through the floorboards. The eventual collapse of the dollar will accomplish that all by itself.
Nota bene: Anthony J. Alfidi is long FXI with a short straddle.
