Hey @timber1956
I just had a bit of a quick read up and as far as I can tell there is nothing to stop the Chinese government from selling on the open market. Because they deal directly with our friends at the Fed doesn't mean they have to deal only with the Fed. It is simply a matter of appointing agents and brokers out there to move them and the deal is done.
I agree with your earlier comment that the US would probably consider it an act of war. If the US froze the Chinese accounts in America it probably not do too much damage to the Chinese economy but I cant say the reverse is true. With the petro dollar under the pump (pun intended) the US is very vulnerable at the moment. Their only defence will be to bring back a gold standard or it may be game over. Barring that; a big fat war, where there are no winners.
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