Throughout 2017 Chinese holdings of US Treasury bonds did decrease and had an uptick again near the end of the year. Alignment and timing aside, the process of reducing USD foreign exchange reserves while increasing the interest rate and incrementally depreciating the dollar agains the renminbi, yen, euro, and pound, will only continue to bring jobs back to America. Tariffs that may be measured against China by Trump will only provide the monetary authorities in Beijing with the pretext to reduce US bonds even further. It all plays out as planned.
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