I am now relying in part on Krugman's three rules, and on his remark about the bond market........
China: "We can crash their stock market, and they still have to buy our stuff."
C: "If we crash their bond market, they can't buy our stuff."
C: "If we crash their stock market, it can now easily be made to look like a self inflicted Trump wound, and not grounds for war, or even for American military assertiveness: merely poor trade policy sour grapes!"
If you were the Chinese, which would you do?
They should crash our stock market, and bring us to heel.
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