The Chinese are threatening to dump US Treasuries even as the federal government borrows money at a torrid rate. If the Chinese were to follow through, it could wreak havoc on the bond market and send interest rates surging despite the Federal Reserve’s best efforts to hold them down.
On Friday. Pres. Trump declared a national emergency. Based on that declaration, the president will reallocate $6.5 billion from other government programs to fund a border wall.
In his podcast on Friday, Peter Schiff said there is indeed a national emergency, but it has nothing to do with the border.
Of course, the real national emergency is not the lack of a wall, the failure to build a wall, but building up the national debt.”