USA vs. China

Jim Rogers has an interesting insight as to what a trade war may look like with China.  The bill that was recently passed by the senate, regarding the Chinese manipulation of their currency, gives the Department of the Treasury the authority to impose sanctions on China.

He also discusses several courses of action the Chinese Government can take if the USA decides to impose sanctions.  The Chinese Government could:

1. Stop purchasing US Government Bonds
2. Sell US Government Bonds

These options above could send interest rates through the roof and/ or devalue the US dollar.   

The United States Government should be working on ways to make it easier for domestic companies to compete internationally, instead of passing legislation that may possibly invoke an international trade war.