What Would Happen To The Us Economy If China Sells All Its Us Assets?
Posted by China Sourcing CommentatorSep 2
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Nothing directly. Those assets will simply be owned by someone else. However, putting a lot of anything up for sale at once depresses the price, and that can affect the value of all similar asset categories.
I know that china has over a trillion us dollars in their reserve. As the dollar lowers in value, they will be looking to get rid of it for their own protection. Also, by dropping their us dollars, the value of the dollar would decrease, which would give their currency more value over ours, so they could buy up more of our assets. But I don’t know if they would do that. I think we may shift into a continental currency like the amero.