Chinese analysts recently expressed concern about the sustainability of the U.S. government’s borrowing and spending, suggesting that the country should further limit its exposure to U.S. debt.
In an article published by China Money, a publication overseen by the Chinese central bank, researchers from the Bank of China wrote, “Although U.S. Treasuries have not yet reached the default threshold, their expansion is unsustainable.”
The analysts recommended limiting exposure to U.S. debt and stocking up on gold.
“[We need to] gradually adjust U.S. Treasury holdings and appropriately increase reserves of gold, key resources and strategic materials.”
The analysts asserted that economic growth wouldn’t likely offset rising debt and persistent budget and trade imbalances. (History supports this assertion.) They also said President Trump’s efforts to narrow the trade deficit using tariffs could curb…
