AP claims that China denies halting of U.S. Treasury purchases, citing “fake news” — but that doesn’t change anything

Yesterday, I posted an article from Bloomberg that made a haste claim that economic advisors in China were recommending halting the purchase of U.S. treasuries.

On the same day, an Associated Press article claims it was fake news.

Clearly, between the two news outlets, one of them is lying (a persistent problem lately, it appears).  The mainstream media has always been untrustworthy, but in this case, it doesn’t really matter who is lying.  In fact, both may just be taking opposite sides in our clickbait driven society and the truth could be somewhere in the middle.

Even if China didn’t say they were going to stop buying U.S. treasuries, it doesn’t hide the fact that the western economy is fully dependent on a continuous stream of debt.  Merely reiterating the obvious problem of exploding debt should be enough to send investors in a panic. If the fate of the U.S. economy can be manipulated by its lenders so easily and triggered at a moment’s notice, that lack of autonomy should be a clear sign of the artificiality and fragility of today’s markets.

Using the chess analogy from yesterday, Bloomberg may have simply pointed out to everyone that there is checkmate on the board, and AP is saying China doesn’t see it — yet.  Would you continue putting all your money on a game knowing that an inevitable loss is sitting right there in the open, on the hopes that the world’s lenders don’t see it?

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