Analyst Kogan called American government bonds the main instrument of China’s influence on the US

The head of the department of analytical research at the Higher School of Financial Management, Mikhail Kogan, said that China is one of the largest holders of the US government debt.

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The analyst recalled that the United States has a large public debt and a budget deficit. However, the country is keeping investors interested in its government bonds as its large economy shows stability. Kogan revealed the main instrument of China’s influence on the United States and called them American government bonds.

The US position has become more precarious of late due to the effects of the pandemic, helicopter finance and accelerating inflation.
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“The scenario when states have a lot of debts that they can service only by turning on the printing press always ends badly, no matter how developed and strong the economy is,” Kogan emphasized.

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If China starts selling US bonds under such circumstances, then future sales will increase and the dollar will fall heavily. The PRC can make such a decision in the conflict over Taiwan.