Yellen told “Prepare for China to DUMP U.S. Treasuries”?

Yellen told “Prepare for China to DUMP U.S. Treasuries”?

There has been some question whether this, is fact, “news”

Congress Tells Treasury Secretary to “Prepare for China to DUMP U.S. Treasuries”

In an absolutely stunning exchange on Capitol Hill, Treasury Secretary Janet Yellen, appearing before a Congressional Committee, was told by Congress to Prepare for China to DUMP $859 Billion in U.S. Treasury Debt Notes — “overnight.”

The exchange went like this:

Congressman: “We did a tabletop exercise, and in response to Sanctions against a Chinese scenario where there would be an invasion of Taiwan, the scenario was that China, the second largest foreign creditor of US Treasuries, would dump that $859 Billion in Treasury Securities.   How are you working with our Allies internationally and also the Federal Reserve to deal with a situation where China would dump that volume of Treasury Securities OVERNIGHT?”

Secretary Yellen: “So, uh, we are not engaging in specific exercises to address such a risk, but the United States National Security Council is certainly concerned on an ongoing basis.”

Congressman: Madam Secretary, I would encourage Treasury to make preparations and be on-the-ready for that scenario.”

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