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Relax. We'll survive China's sales of U.S. debt.

A lot of people I talk to are very worried about Chinese holdings of U.S. sovereign debt. The general idea is that if China decided to dump Treasuries, the U.S. economy would go into a tailspin. This is part of the overall narrative cited by Donald Trump and others that the U.S. is "losing" to China. That was a plausible story. But now that China's titanic economic boom is coming to an end, we're finding that the story wasn't right. This became clear when China recently began dumping U.S. debt. In past years, China bought a lot of Treasuries to keep its currency cheap, so that it could sell lots of stuff at low prices to the U.S. (whether this was a wise economic...