In an absolutely stunning exchange on Capitol Hill, Treasury Secretary Janet Yellen, appearing before a Congressional Committee, was told by Congress to Prepare for China to DUMP $859 Billion in U.S. Treasury Debt Notes -- "overnight."
The exchange went like this:
Congressman: "We did a tabletop exercise, and in response to Sanctions against a Chinese scenario where there would be an invasion of Taiwan, the scenario was that China, the second largest foreign creditor of US Treasuries, would dump that $859 Billion in Treasury Securities. How are you working with our Allies internationally and also the Federal Reserve to deal with a situation where China would dump that volume of Treasury Securities OVERNIGHT?"
Secretary Yellen: "So, uh, we are not engaging in specific exercises to address such a risk, but the United States National Security Council is certainly concerned on an ongoing basis."
Congressman: "Madam Secretary, I would encourage Treasury to make preparations and be on-the-ready for that scenario."
Here is video of that specific segment of the Congressional hearing:
