Hacker News Reader

> It means China is dumping US debt. Which will mean a surge in interest rates, a weaker US dollar, and in a nightmare scenario, hyperinflation.

But then again, the popular wisdom seems to be that a weak currency supports exports. So I don't know that this is clearly a bad thing. Hyperinflation I would peg to be usually caused by a break down of the domestic market.

A weak currency means more exports but higher import prices. Add the additional tariff coming soon means anything from China will get more expensive. Perhaps this forces Trump to drop them.. it could backfire and create a local industry that will compete against China.

If you believe Trump, then the creation of a tarrif-protected local industry would constitute "front-firing."

The article states China’s holdings are still increasing, the opposite of dumping. Japan is simply increasing faster.

Wouldn’t that deeply hurt the Chinese economy as their boost from their currency inflation goes away