Breitbart: Chinese Economy Could Sink U.S. published a story on Monday detailing how the American and Chinese economies are tightly tied together. Much of this, according to the article, revolves around U.S. government practices of command-and-control economics.

As China’s state-run economy collapses, the threat of China pulling down the United States is very real indeed.

“China’s economy has surpassed the United States’ in absolute terms, based largely on the back of massive debt and inflation. As of mid-2014, according to McKinsey & Co., China carried a total government, corporate and household debt of $28 trillion – 282 percent of the country’s annual GDP, according to Bloomberg. China built its economic boom on the back of borrowing, artificial stimulation of the credit markets, and subsidies to companies, particularly in construction. China has published statistics showing tremendous growth rates for years, but those growth rates were crafted from nonsense in the same way that the Obama administration has claimed historic economic recovery on the back of borrowing and tacit inflation.” —

As the Paper Dragon begins to inexorably fold, what will the Chinese government do to stem the tide?

Optimists about China point to the fact that China has $3.7 trillion socked away in foreign exchange reserves. But that should present the world with a far larger worry: what happens if China decides to liquidate its assets? If to meet its crisis, China began selling off American debt, that would act as a solar plexus punch to America’s economy, making it difficult for America to continue selling new debt and forcing America to raise its own interest rates – a move the Federal Reserve has been loathe to make, considering the fragility of the so-called Obama recovery. And China has already explored selling US debt: in two months earlier this year, China sold $120 billion in US Treasuries. Considering China holds $2.2 trillion in American debt, at least publicly – because of China’s nontransparency and use of front buyers, we actually don’t know how much American debt the Chinese hold.—

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Breitbart China Crash