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Ray Dalio says he wouldn’t rule out China weaponizing its massive US Treasury holdings
Hedge fund titan Ray Dalio said he wouldn’t rule out China using its Treasury holdings to gain an upper hand against the U.S. in the trade war — a view that contrasts with many other observers. “We have a debtor-creditor relationship, not just a trade relationship. And (that) can be a dangerous thing,” Dalio, founder…
Read MoreTreasury Designates China as a Currency Manipulator
The Omnibus Trade and Competitiveness Act of 1988 requires the Secretary of the Treasury to analyze the exchange rate policies of other countries. Under Section 3004 of the Act, the Secretary must “consider whether countries manipulate the rate of exchange between their currency and the United States dollar for purposes of preventing effective balance of…
Read MoreActions Needed to Achieve Long-Term Fiscal Sustainability
Debt held by the public was $15.8 trillion—or 78 percent of gross domestic product (GDP)—at the end of fiscal year 2018. It is projected to surpass its historical high of 106 percent within 13 to 20 years, and climb between about 250 to 500 percent by 2092.
Read MoreFive Years to the National Debt Death Spiral
According to the U.S. Treasury Department’s Office of Debt Management, the U.S. government is just five years away from the point where every new dollar it borrows from the public will go toward funding interest payments on the national debt.
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