China and Japan Aren't Going to Dump Treasuries

 America’s biggest “creditors” care more about trade competitiveness than the value of their reserve holdings.

Should China and Japan have some special influence on U.S. fiscal policies? After all, they own more than $2.4 trillion of U.S. government bonds, and routinely use this as an excuse to tell us what to do. Officials are darkly warning about the need to reconsider their portfolio allocations. Some worry that a U.S. debt default -- even a temporary one -- might lead these countries to go on a buyer's strike, or even sell their bonds outright.

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