Senator Graham Wants to Default on $1 Trillion Debt Owed to China

Mish

7 hours ago

Senator Lindsey Graham proposes the US should default on the Chinese holding of US treasuries.

The US economically illiterate nutcases are out this weekend led by Senator Graham. 

The Senator proposes a Pandemic Tariff including cancelling  all debt owed to China.

Anger in political circles, particularly in the Republican Party, has manifested itself in legislative proposals seeking to allow U.S citizens to sue China in American courts for the pandemic, calling for sanctions on Chinese officials

Former US ambassador to the UN and former South Carolina governor, Indian-American Nikki Haley, widely seen as a prospective last-minute vice-presidential nominee for a Trump second term, is among those pressing for action against Beijing. “China’s Communist government needs to be held accountable for their role in lying about the Coronavirus pandemic, and the US Congress needs to respond – now,” Haley said in a STOP Communist China petition that received rousing endorsement in Republican circles this week.

Other US lawmakers want to go even further. In a precipitate suggestion, Haley’s fellow South Carolinian, Senator Lindsey Graham, who has President Trump’s ear, called for cancelling the more than $1 trillion in U.S treasury securities that China holds.

A US default would be economic suicide, collapse the US dollar, collapse the stock market and throw the entire global currency system into chaos.

But it would do wonders for gold.