As we speak China is holding some $1.2 trillion in US Treasuries, Chinese credit rating agency Dagong downgraded US sovereign ratings from A- to BBB+ overnight, citing "deficiencies in US political ecology" and tax cuts that "directly reduce the federal government's sources of debt repayment" weakening the base of the government's debt repayment.
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The President Donald Trump’s tax package is estimated to add $1.4 trillion over a decade to the $20 trillion national debt burden.
To what extent does this affect US economy
I guess China will be less eager to purchase new US treasuries and probably get rid of existing ones ..
What effect will that have on US economy , we can only speculate
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