What it would mean for the US to carry out the Treasury Secretary’s threat to sanction China and bar it from the international dollar system. Trump’s government who is not an imbecile? US Russian foreign economic journal Secretary Steven Mnuchin threatens China.

20 trillion in public debt, having to print money with which to buy its own bonds, threatening the second largest economy in the world, an economy on purchasing power parity terms that is larger than the US economy. Take a moment to think about Mnuchin’s threat to China. How many US firms are located in China? It is not only Apple and Nike. Would sanctions on China mean that the US firms could not sell their Chinese made products in the US or anywhere outside China? Do you think the global US corporations would stand for this?

What if China responded by nationalizing all US factories and all Western owned banks in China and Hong Kong? Mnuchin is like the imbecile Nikki Haley. He doesn’t know who he is threatening. Consider Mnuchin’s threat to exclude China from the international dollar system. Nothing could do more harm to the US and more good to China. A huge amount of economic transactions would simply exit the dollar system, reducing its scope and importance.