China threatens “nuclear dollar” option

A massive Chinese sell-off of U.S. dollars would almost certainly push us into a recession:

Two officials at leading Communist Party bodies have given interviews in recent days warning — for the first time — that Beijing may use its $1.33 trillion (£658bn) of foreign reserves as a political weapon to counter pressure from the US Congress.

Of course, even the threat of such action is likely to hammer the dollar to some degree.