by James Rickards
There is one story that may be bigger than the elections, the riots and the pandemic, but it will take a few years to play out.
The U.S. will convert China’s $1.4 trillion of Treasury notes to a trust fund for COVID-19 victims and economic damages. In other words, say goodbye to China’s dollar reserves.
China was massively negligent by covering up the release of SARS-CoV-2. The toll in human suffering and economic losses are incalculable. The U.S. could seize Chinese holdings of U.S. Treasury securities and convert them to a trust fund to help make up some of the costs. It’s simple justice for the original crime.