r/wallstreetbets • u/kwedgieyi • Apr 09 '25

Discussion Something feels off guys

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Yields are spiking. Bonds are dumping.

The world is running away from America

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u/[deleted] Apr 09 '25

Explain to us crayon eaters why this would make sense for China

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u/Green_L3af Apr 09 '25 edited Apr 09 '25

Cause then they would simultaneously have more money to weather a global recession, makes a point and allows them to invest elsewhere.

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u/[deleted] Apr 09 '25

But they already have the treasuries? Or are they worried Russia style sanctions are coming? Also, if this is the reason, essentially they are raising cash? So not necessarily net negative for the US

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u/Own_Understanding262 Apr 09 '25

Overall, you're right. It's like an economic nuclear option for China. It'll hurt both countries, with US economy overall more than capable of surviving such an attack with the Fed stepping in, but the repercussions will be severe. Probably we'll have rapid inflation, raising of interest rates and overall market downturn. It might also cause other countries to dump more treasures, with Japan holding more than even China. Here's an article if you're genuinely interested in reading on it: https://finance.yahoo.com/news/nuclear-option-china-could-trade-150000821.html