One way to make China pay for the pandemic, here's how.

Let the federal reserve write checks of the amount of 10k for every man woman and child in the US. Deduct the sum from the debt the US owes China. Is there any real reason we can't or shouldn't do this? Feel free to comment.

a reply to: openminded2011

works for me Then have Trump put the Federal Reserve under the Secretary of Treasury and forgive the rest of the debt .

a reply to: openminded2011

Monetize that debt!



Honestly, debt is money you don't have. Digging the hole deeper won't get you closet to daylight.

Ha, debt is all funny money. It doesn't actually exist.

originally posted by: openminded2011
Let the federal reserve write checks of the amount of 10k for every man woman and child in the US. Deduct the sum from the debt the US owes China. Is there any real reason we can't or shouldn't do this? Feel free to comment.

Other than the reason they own a great deal of the US due to the massive fire sale of bundled upside down mortgages we sold them ?

a reply to: openminded2011

So, let's all think about this.


What is this debt people talk about?

So, China inflates their currency and types or prints money out of thin air and "invests" in US debt.

So in turn, we inflate our currency (like we are doing today) and give them "created out of thin air" money back.

Debt you say?

It got me a new car....lol....

China holds promissory notes that represents our debt. Those notes can be sold to other nations. If they were backed into a corner they could dump those notes on the market which would devalue the dollar quickly. It would hurt them as well which is why they don't do it. It is a complicated issue which is why simplistic answers won't work.

a reply to: openminded2011

The US owe China a lot of money
If you don’t pay, you are defaulting on a debt
Legal ramifications globally and no more money from China
China will take what you owe them, in land, in goods.

China are not giving you money for free, the US has put up collateral
Are you a child?
Cos that’s how children think

a reply to: openminded2011

Perfect time for China to buy real estate here at really cheap prices, so when USA defaults "Welcome To Western China".

originally posted by: chr0naut
a reply to: openminded2011

Monetize that debt!

Honestly, debt is money you don't have. Digging the hole deeper won't get you closet to daylight.

It will, if you dig through to China

originally posted by: visitedbythem

originally posted by: chr0naut
a reply to: openminded2011

Monetize that debt!

Honestly, debt is money you don't have. Digging the hole deeper won't get you closet to daylight.

It will, if you dig through to China

LOL.



"but first you must go through the planet core"...

originally posted by: Grimpachi
China holds promissory notes that represents our debt. Those notes can be sold to other nations. If they were backed into a corner they could dump those notes on the market which would devalue the dollar quickly. It would hurt them as well which is why they don't do it. It is a complicated issue which is why simplistic answers won't work.

Let’s hope they aren’t willing to do it just to hurt us anyway. If they do that’s when I will really worry....

originally posted by: openminded2011
Let the federal reserve write checks of the amount of 10k for every man woman and child in the US. Deduct the sum from the debt the US owes China. Is there any real reason we can't or shouldn't do this? Feel free to comment.

Remember what’s good for the goose...
If we deduct from China, how many places can also hold us accountable too?

originally posted by: Raggedyman
a reply to: openminded2011

The US owe China a lot of money
If you don’t pay, you are defaulting on a debt
Legal ramifications globally and no more money from China
China will take what you owe them, in land, in goods.

China are not giving you money for free, the US has put up collateral
Are you a child?
Cos that’s how children think

You do not owe the country who starts a war with you.

a reply to: yuppa

I didn’t read a declaration of war from anyone
Oh you mean make this as big, silly and as ludicrous as you possible can, talk a lot of stupidity about war and such, hyperbole and drama so you don’t have to pay back what you owe them

The US is in debt to the Chinese, your fault.
It’s not a war, it’s dumb and greedy to spend money you don’t have

a reply to: yuppa

You do not owe the country who starts a war with you.

What? Is China starting a war with America? You know something we do not know?

Ok there are 2 parts to this.

1. Give everyone 10k.

Adding new money isn't inherently inflationary (despite some claims) however adding that much all at once would be.

This could be mitigated by reducing other stimulus spending, phasing payments across a long period of time or even making them into some kind of savings account that limits withdrawals.

2. Taking from the debt owed to China.

That would work out more than the US currently owes China.

If you however just scrubbed the entire debt what would happen? Would depend on how was viewed internationally. If seen as a proportional response then impact would be mainly on trade with China which would be bad for both the US and China.

If viewed as unreasonable then would impact ability if US to sell bonds overseas which, with a large trade deficit, would be fairly catastrophic to the economy.

If we default on treasury debt to China other nations could lose faith in our ability to pay and we would quickly see the USD lose its reserve status as well as cause an entire rebalancing of global investment as investors walk away from us market.

Encourage Americans to buy american while applying pressure on co.panies to shift their supply chains away from China. Lots of companies are already fleeing china apple keeps shifting more of their supply chains to Vietnam for example. And many others are doing the same.

originally posted by: Stevenmonet
If we default on treasury debt to China other nations could lose faith in our ability to pay and we would quickly see the USD lose its reserve status as well as cause an entire rebalancing of global investment as investors walk away from us markets.

Yeah, but people on here do not look at that on here! I bet a lot of people on here are happy the virus came along, on the chance they have an excuse for this to wipe their debt with China.

Pretty sad really!