Palantir Technologies Inc. PLTR co-founder Joe Lonsdale flagged unusual market activity on Tuesday, questioning whether China is “dumping treasuries like mad” amid escalating trade tensions with the U.S.
What Happened: Tesla Inc. TSLA director Kimbal Musk responded that China’s apparent selling strategy may be designed to pressure the Federal Reserve ahead of a critical debt refinancing deadline.
President Donald Trump is “playing chicken with the Fed. China knows this and is selling treasuries to try to make sure Trump loses the Fed-Chicken game,” Musk wrote on X, pointing to $6.5 trillion in U.S. debt needing refinancing by June.
The exchange comes as U.S. markets experience what financial strategist Lawrence McDonald called “historically swift destruction of equity capital,” with $9 trillion wiped out in six weeks following Trump’s tariff announcements.
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