[winfred]

>And, while not likely to be used in the near term, this is absolutely an investment in defense.

How? By dumping them below market rate? US/JPN will just print money and buy them.

If ever there is a war between these nations, these bonds become worthless overnight. Make no mistake, these T bonds are liabilities for China, not the other way around.

[Lost_BiomedE]

If the Chinese gov did that after loading up on gold, and backed the chinese currency with a fraction of gold, they would have a much better chance of convincing others to drop the US dollar as a reserve currency.

How do you go broke? Slowly, then all at once.