China Banks Stockpile Record $1T

If you want to discuss financial shocks, and who has the upper hand in the US-China trade dispute, this along with the associated high degree of Chinese held US debt, is the real problem. Bloomberg write about this as an opportunity for China to liberalize its banking and cash asset policy. I look at it as a potential opportunity for China to alter the USD position worldwide. This is a lot of money to hold. It has to both advantage and disadvantage, depending on how its used.

Bitcoin and other digital funny money isn't what matters. This stuff matters.

Arriving at a point in time where you have to pull strategic-national-interest out of the bottom drawer suggests you didn't have your eyes on the emerging prize. The US has a habit of doing this: Consider the opposition to UN policy, and the proposed de-funding: What did it do? It created a power vacuum into which somebody else stepped. Somebody else now has all the influence, and its affecting world decision making. You can try to blame it on their polity, but in the end, if you got tired of your own national interest and spend to achieve it, creating the vacuum for them to occupy was your fault, not theirs.

I know thats not directly related to these holdings, but if somebody feels exposed to risk because Chinese banking holds USD, then ask yourself what aspects of policy led here. I think the answer is that both US and Chinese policy drives led here, you can't have one without the other basically.