China Has No Leverage Against The U.S. In The Trade War Or On Hong Kong

Xi Jinping, Donald Trump and senior officials at a working dinner in Buenos Aires after the G20 summit in December 2018 ( Reuters )

Instapundit: WINNING: China Is Out of Economic Ammo Against the U.S. “It has maxed out tariffs and other trade barriers, and selling Treasuries is ineffective.”

It isn’t all fun and games:

The agricultural industry has been hit especially hard. Farm bankruptcies are up 24% this year, and a report by the American Farm Bureau Federation finds that almost 40% of farmers’ income this year will come either from insurance payouts or government bailouts.

Nobody ever said trade wars are fun and easy — er, Trump did, which wasn’t his smartest statement ever — but the short-term pain for farmers ought to yield longterm benefits to our economy generally. And also improve our global position relative to China’s.

More:

The other big weapon in the Chinese arsenal is investment. The Chinese government is traditionally a major buyer of U.S. government debt, and it holds the second-biggest stash of Treasuries (after Japan). Over the years, many have fretted that a spat between the U.S. and China would lead the latter to sell off that mountain of debt, creating a world of hurt for the U.S. financial system and economy.

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WNU Editor: Could not have said it any better.