BONUS! The myth of a US sovereign debt crisis.

Calm Down.

Every time the dollar debate heats up, some genius pops up screaming, “BUT CHINA AND JAPAN WILL DUMP TREASURIES!!!”

Yeah, sure — and set themselves on fire while they’re at it.

Let’s break this down for the clowns in the back:

• China holds ~$775B, Japan ~$1.1T in Treasuries.They sell? They nuke their own reserves, crush their own banks, and send the yuan and yen soaring — straight-up suicide for two export-driven economies.

• Who buys the dip? Everyone.U.S. commercial banks, pensions, insurers, hedge funds — they’d rush to scoop up cheap Treasuries. Add in eurozone banks, UK funds, Swiss institutions. You think the world’s deepest bond market stays in free fall? Please.

• Who backstops the system? The Fed and its friends.The Fed can slam in with QE, swap lines, repo ops. Ally central banks (ECB, BoE, SNB, BoJ) will be right there — because a Treasury market meltdown nukes their financial systems, too.

Bottom line:

When China and Japan sell off U.S. Treasuries, they end up hurting themselves — and the global system is designed to stabilize things when big players panic.

Let's stop with the doomsday nonsense.

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