The amount of Treasuries China holds has been decreasing since 2018. Is that why the Treasury has to buy bonds by creating money out of nothing which causes inflation?
https://www.forbes.com/sites/jamesbroughel/2026/08/22/treasury-is-buying-its-own-bonds-where-is-the-money-coming-from/
The selling of bonds causes interest rates to rise, potentially hurting U.S. economic growth. So buying bonds lowers interest rates. But if the US treasury keeps bailing out the bond market what is to stop China from selling more US bonds? Especially if they intend to take back Taiwan. China knows if they take Taiwan the US will steal their US bonds.
Inflation usually leads to higher interest rates too. The very thing the Treasury Dept. is trying to prevent by buying bonds. But if you are paying for the bonds by creating money from nothing that creates inflation.....which they typically fight by raising interest rates. See the circular pattern? This cannot go on forever. Especially with a debt burden that will be paid for with creating money out of nothing which creates inflation, just like QE does. It looks like hyper inflation is inevitable without a return to fiscal sanity.
When does the house of cards collapse?
