U.S. Should Seize China’s $1 Trillion in Treasury Obligations as Coronavirus Compensation

[Elderberry]

Breitbart 4/7/2020

Gordon Chang: U.S. Should Seize China’s $1 Trillion in Treasury Obligations as Coronavirus Compensation

America can seize China’s holdings of U.S. Treasury obligations as compensation for the one-party state’s negligence related to the coronavirus pandemic, said Gordon Chang, Daily Beast columnist and author of The Great U.S.-China Tech War, offering his remarks on Monday’s edition of SiriusXM’s Breitbart News Tonight with host Rebecca Mansour and special guest host Ed Martin.

China owns approximately $1.2 trillion in U.S. Treasury holdings.

Chang said, “What the United States can do is just simply seize the treasury obligations that China holds in their own name, they hold a little more than a trillion U.S. dollars in treasuries, probably through nominees they hold some more.”

Chang continued, “But what I recommend is that we not do this alone, and the reason is that China would say that this was a repudiation of debt. They would say that we were bad stewards of the global financial system. They would just tar us and they would actually go after the dollar.”

“What we can do is work with the issuers of other major currencies,” added Chang. “For instance, the Canadian dollar, the pound, the Swiss Franc, the euro, the yen, if we were to do that, and if all these countries were going to confiscate assets, then we have the makings of a real solution.”

More: https://www.breitbart.com/radio/2020/04/07/gordon-chang-u-s-should-seize-chinas-1-trillion-in-treasury-obligations-as-coronavirus-compensation/

[EdinVA]

 

[cato potatoe]

If open discussions happened, the Chinese would just sell their treasury bonds.  The US would need to do this unilaterally.

[DB]

And what other country would buy our treasure obligations if we can just seize them when we feel like it?

[Smokin Joe]

And what other country would buy our treasure obligations if we can just seize them when we feel like it?

Exactly.

[jmyrlefuller]

And what other country would buy our treasure obligations if we can just seize them when we feel like it?

Given the circumstances of what China did, I think the rest of the world would be fully understanding.

[DB]

Given the circumstances of what China did, I think the rest of the world would be fully understanding.

The right way to punish China is pull investment and manufacturing out of China. And not allow their spies/thiefs into our schools and businesses.

[Smokin Joe]

The right way to punish China is pull investment and manufacturing out of China. And not allow their spies/thiefs into our schools and businesses.

Precisely.

[Fishrrman]

DB wrote:
"The right way to punish China is pull investment and manufacturing out of China. And not allow their spies/thiefs into our schools and businesses."

You win.
But the most I would hope for is for some critical industries (drug production, anything to do with defense) to repatriate. Not much more.

I agree about kicking out Chinese students from schools, businesses, etc.
I wouldn't mind a revived "Chinese exclusion act". (not kidding)
But you know that ain't never happenin' ...

[jpsb]

From another thread


China has ruined its' international reputation. They have lost face.

Foreign investment will flee China. Foreign manufacturing companies will flee China. The government of China is going to get sued for trillions of dollars. Where those law suits are successful Chinese assets will be seized.

China is totally screwed and our cold war with China could very easily and quickly turn hot. Which is why President Trump is speaking very softly and respectfully about China.

The CCP does not mind killing millions of people, it has done that before. We had better be ready for them to try again. I would not want to be on an aircraft carrier patrolling the South China Sea.

[jpsb]

Given the circumstances of what China did, I think the rest of the world would be fully understanding.

 

[jpsb]

The right way to punish China is pull investment and manufacturing out of China. And not allow their spies/thiefs into our schools and businesses.

I hadn't thought about the schools but that is an excellent idea, close our universities to Chinese students(spies).

[DB]

From another thread


China has ruined its' international reputation. They have lost face.

Foreign investment will flee China. Foreign manufacturing companies will flee China. The government of China is going to get sued for trillions of dollars. Where those law suits are successful Chinese assets will be seized.

China is totally screwed and our cold war with China could very easily and quickly turn hot. Which is why President Trump is speaking very softly and respectfully about China.

The CCP does not mind killing millions of people, it has done that before. We had better be ready for them to try again. I would not want to be on an aircraft carrier patrolling the South China Sea.

China's exports would go to zero in a hot war. They really can't afford to do that. Their per capita GDP is already 1/6th ours before all this started. And with most of the world shut down they have almost no one to export to right now. China also has no means of moving major military assets much outside their borders. A real war would devastate them.

[truth_seeker]

The right way to punish China is pull investment and manufacturing out of China. And not allow their spies/thiefs into our schools and businesses.

The US set up a lot of the manufacturing in China.

Jus move it to Guatamala, Panama, Costa Rico, Puerto Rico, Columbia, Ecuador, etc.

Vietnam, Thailand, Cambodia, Laos.

Etc.

[DB]

The US set up a lot of the manufacturing in China.

Jus move it to Guatamala, Panama, Costa Rico, Puerto Rico, Columbia, Ecuador, etc.

Vietnam, Thailand, Cambodia, Laos.

Etc.

Yep.