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At worst, it could spell the end of America as a superpower and destroy the global economy as we know it. - It started with a joke, but quickly went viral everywhere from the South China Sea to the White House.
"We hate you guys," Luo Ping, director-general at the China Banking Regulatory Commission, wisecracked in New York last month, speaking of the U.S. habit of issuing trillions worth of the Treasury bills that China still considers safe havens. "Once you start issuing $1 trillion, $2 trillion ... we know the dollar is going to depreciate, so we hate you guys, but there is nothing much we can do."
That is, nothing much aside from flexing China's economic and military muscle, the latter of which it recently accomplished in the South China Sea when five Chinese vessels aggressively surrounded the USNS Impeccable, an unarmed surveillance ship spying in the internationally contested Spratly Islands.
Do you realize that we only owe then about 1 trillion dollars? Everyone thinks that they hold all of our debt, this is far from the case. Sure it is about 8% of our total debt and they are the largest debt holder, but it is still only about 8%.
You're right. A local bank branch wouldnt keep lending someone money if they were not making payments on their current loans. And I do think we need to pay it back asap, at the very least start to pay it down. I think it is bad for the USA to carry such a large debt load with any one country. Actually the debt load is way too high overall. It is scary and out of control. I was more or less informing the poster above you that China doesnt own the USA and isnt even close to owning it, even if the USA were to default on their loans. Overall on this board most people believe China hold all the debt of the USA, and that is not the case. Although I just found a number they hold about 1.95 trillion so it is higher then I originally posted. Maybe the stimulus will work and the USA will actually make some money and then use it to pay down some of the debt. Hell they just recieved a 740 million dollar dividend payment from Bank Of America yesterday, and over 1 billion so far this year, maybe they should send that directly to the chinese. Oh, my other point is they dont hate us. They would collapse faster then we would if we stopped buying their products. I could see the scenario now. China "We are no longer buying you treasuries" USA "We will no longer import any of your goods" China "Ok, how much do you need?"
You're not dealing with a local bank branch here, you do realise?
Originally posted by disgustedbyhumanity
We owe China. As such we are in full control. If we don't pay them who loses? China loses. All that money they got for selling us inferior goods goes up in smoke. We keep the goods and they lose their money and there is little they can do about it. Despite what some might say on this site, they have no claim over anything in the US.