Bailout is Bailing out China not the U.S.

Bailout is Bailing out China not the U.S.

articles.moneycentral.msn.com

The deal adds $5 trillion in debt to an already stressed national balance sheet. That basically doubles the U.S. national debt and can't help but push the U.S. dollar lower and U.S. interest rates higher in the long term. The U.S. government is going to have to sell more Treasury bonds to cover its new debt.

Taxpayers are on the hook for somewhere between $25 billion and $200 billion. That's money that will have to come from higher taxes or from more government debt.

(visit the link for the full news article)

If the American people dont open their eyes, America will be another Antarctica, it will be owned by everyone. Its not a bad Idea but there goes the ball game for humanity.

I personally saw that coming. China is the sleeping Dragon and it is waking up and wanting to collect its debts.

What do all of you think? Is America being sold from underneath the table? Or is all the greed finally taking its toll?

articles.moneycentral.msn.com
(visit the link for the full news article)

Since China allready owns nearly 75 trillion of our greenbacks, I'd say your very close to the truth. It is the sleeping dragon that has awakened and is ready to devour all in its path.
Zindo

I did a lot more reading a lot more reasearch I am appaled that our Government is seeking so low. I mean they even pretended that they put forth effort to design this act. I mean heck it seems like they planned it 6 months ago knowing this was going to happen and are just now using it.

I think the bail out needs to be financed by the greedy oil companies gouging everyones pockets causing this economic crisis. You know they can afford it.

The Chinese can't "collect its debts," they can either dump them on the open market and take a potentially massive loss, or they can hold on until the maturity date. The idea of the Chinese dumping U.S. debt, is preposterous, you as a bond holder have no right to demand your money back instantly, Once the bond is in the secondary market, that's where it remains. The government merely gives you interest on your investment. The prices and yield are set in the secondary market, which is the bond market in this case. As the price drops, the yield rises and you find an equilibrium as a higher yield becomes a more attractive investment. If the Chinese had an intention to dump treasuries, they wouldn't be buying them at really really low interest rates (aka high prices) Geez people, take some economics classes.

[edit on 25-9-2008 by yellowcard]

Thats all true in a world that doesn't use money as a weapon. In this case the Chinese could literaly blow us out of the water without fireing a shot by dumping that financial bombshell. And, don't think for one minute they care about the worth of what they have invested in. The Chinese play the long game, have for centuries. A 20 year wait for their economy to pick up after ruining ours wouldn't raise a hackel. It would be a pimple on the back of a dinosaur.
Zindo