China holds trump card on U.S. economy - by Dan Rather
China is the owner of well over $500 billion in U.S. Treasury bonds, by most estimates, and of massive U.S. currency reserves. Those Treasury bonds represent U.S. government debt, much of it used to fund the wars the US has been fighting in Iraq and Afghanistan without a hike in taxes.
When taken together with the dollars in Chinese hands, they represent tremendous leverage by a foreign power over the health of our economy. A massive sell-off of either could crash the U.S. dollar and make it harder for the American government to borrow more money.
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