Cramer Remix: China needs us more than we need China

well well a good trump story from cnbc perhaps a spike in the market

one scenario: NO more 'cheap stuff'...inflation will go up instant 2 to 4 %.

Can any Administration withstand the pressure of the inflation??

There is good reasoning fromCramer but may not be a full argument.

Cramer...this time I don't buy...period.

buy usd: no more cheap stuff meaning higher prices(inflation)...in turn Powell...the Feds will have more reason to hike interest rates.
yup...sell EUR/USD.
Thanks for the tip Cramer.

Cramer is a clown. Trump's I'll huff and I'll puff till I blow your house down is bullshit. The Yanks need China as much as China needs the US. Who else is going to buy US debt, nobody. The Chinese buy US debt and convert it to gold which is why they they continue to supply the US.

Sorry am I confussed, I thought higher inflation time to cut interest rates. Lower U.S. dollar.

Higher Inflations needs higher Rates.

PRC buys US debt because it is instantly convertible to US dollars but bears interest. Not much in these troubled times, but better than none which is what cash brings. And PRC used to have about 4 trillion, now down to about 3 trillion USD foreign reserves, accumulated from years and years of undervaluing the RMB. Not many things you can buy with that pile of cash without jacking up the price by a lot.

As of "who", pretty much everyone else! Most of the debt is owned by US public (pension funds, etc). From the foreign holders PRC holds ~1.13 trillion (excluding 0.20 trillion held by HK SAR) out of ~6.9, followed by Japan holding ~1.07 trillion.

https://ticdata.treasury.gov/Publish/mfh.txt

The above ~6.9 trillion is "private" debt, that is, held by entities other than US government, totaling at ~16 trillion. Those entities include The Federal Reserve. So, the Fed can create a special QE-Ch. program to absorb all debt "sold" by PRC instantaneously without moving the markets and changing the total amount. The interest paid to PRC will be now paid to the US taxpayers at the end of the year when the FED transfers its profits to Treasury Dept. PRC will get equiv amount of US dollars, to spend as it wishes. Problem solved.

Cramer is right.