I think if you read the main story carefully, you can see that China wants to achieve its ends, not by any action but by the threat of action. I think it is indicative of their relative strength (and US weekness) when all China has to do is threaten and the bonds go down. I think that is why that economist in China used the phrase “nuclear option” – not so much to harm as much as merely threatening unimaginable catastrophe. If it causes our treasury and Congress to back off, they have achieved the purpose without moving a finger. Now that is real power. Not dropping bombs.
