The U.S. Could Seize China’s Treasury Holdings

by James Rickards
Daily Reckoning

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.

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