For centuries, China has sold government bonds worldwide, including a large portion to American investors. Problem is, while investors in other countries are reaping benefits from their trades, Americans are getting stiffed. That has drawn the ire of President Trump, who is adamant about China paying its debt. While the rebuke is pooh-poohed by the Chinese, President Trump, as always, has a clever way to make it happen.
Turns out there’s an ingenious way for U.S.-China relations to become debt free. The obvious solution, of course, would be for Western world to stop investing in Chinese bonds. But President Trump is looking to invoke an old law passed long ago by Congress. At the President’s request, the Treasury Secretary can purchase the Chinese bonds held by Americans–more than 20,000 families in 46 states–and use them to extinguish the debt that America owes China.
In the following edition of China Uncensored, producer Matt Gnaizda brings us more on the issue with Jonna Bianco, president of the American Bondholders Foundation.ARVE Error: need id and provider