Does anyone else see a simile with August 2015? In that month Usd-Cnh jumped from 6.20 to 6.60, S&P 500 -15%, copper -9%, and Eur-Usd has reached a gain of over 700 pips.
“China may stop purchasing US agricultural products and energy, reduce Boeing orders and restrict US service trade with China. Many Chinese scholars are discussing the possibility of dumping US Treasuries and how to do it specifically,” Hu Xijin, editor-in-chief of the Global Times, said in a tweet.
For the first time, I read about boycotting US government bonds. A taboo has been broken, which so far few have taken into consideration given that China is the largest holder of government bonds. We see that something is changing in this commonplace. We must recalibrate all the Chinese reaction function!
The markets are likely to be more frightened by this reference to government bonds than to 60bn of duties.
“China may stop purchasing US agricultural products and energy, reduce Boeing orders and restrict US service trade with China. Many Chinese scholars are discussing the possibility of dumping US Treasuries and how to do it specifically,” Hu Xijin, editor-in-chief of the Global Times, said in a tweet.
For the first time, I read about boycotting US government bonds. A taboo has been broken, which so far few have taken into consideration given that China is the largest holder of government bonds. We see that something is changing in this commonplace. We must recalibrate all the Chinese reaction function!
The markets are likely to be more frightened by this reference to government bonds than to 60bn of duties.