China dumped billions of America's debt in December.

http://money.cnn.com/2016/02/17/news/economy/china-us-debt-dump-central-banks/

GARY NORTH'S TIP OF THE WEEK
Foreign central banks are selling off U.S. Treasury debt.

http://www.garynorth.com/snip/1223.htm

There have been no negative effects for the U.S. government. The dollar
remains high, despite the increase in the supply of dollar-denominated
debt in world currency markets. Second, long-term T-bond rates have not
risen, i.e., the prices of Treasury debt certificates have not fallen.

For years, it looked as though China could get its way in negotiations with
U.S. government trade officials. "Cross us, and we will sell our T-bills and
T-bonds." Well, they have been selling T-debt, but nothing bad has happened
to the U.S. government.

http://www.garynorth.com/snip/1224.htm

The tremendous demand for dollars, coupled with the tremendous demand for
T-bonds, have combined to neutralize the dumping of T-debt by foreign
central banks.

A recession will strengthen the dollar and hold down T-bond rates -- the
quest for safety and yield.

China's bluff has been called . . . by China.

Gary "Cash" North