While our government’s debt has been a hot topic for many years, it’s the money that we owe China that has been frightening financial analysts, especially since the crash of 2008. The fact that we are indebted to one of our biggest competitors on the global stage, does not bode well for our future. The only question is, what happens if China decides to pull the rug out from under us by ditching these debts?
We may be about to find out, since lately, China has been dropping US government bonds like hot potatoes. After the Chinese government devalued the yuan in August, their currency experienced a massive sell-off by investors who feared that more devaluations were ahead. To contain the situation, China’s central bank has been buying up their own currency while selling their dollar reserves.
While the trend is still young, it appears that the global dollar sell-off has begun in earnest.
Joshua Krause is a reporter, writer and researcher at The Daily Sheeple. He was born and raised in the Bay Area and is a freelance writer and author. You can follow Joshua’s reports at Facebook or on his personal Twitter. Joshua’s website is Strange Danger.