Comment Re:Aaaand, why don't the gov't punish them for it? (Score 2) 42
It would be mutual assured bankruptcy. The minute Chinese start selling off their T bills, USA would cancel them in whole at once. Such a step would make it difficult to ever finance the US budget deficit again, but it would also tear a massive hole into Chinese budget and finances, which likely bankrupts them as well. This may well be the reason, why China never played that card.