The fact that China uses promises (IOU's) as currency, and that we all accept these IOU's as having value means that China is bankrupt.

Any IOU from any county, be it in $ £ Euros, or any other denomination, is still an IOU.

None of them are worth anything in reality.

nonsense,usa is bankrupt not china , more american propaganda to hide fact that how incompetent US govt is

[edit on 13-3-2010 by sadchild01]

Let's put it in nice and gentle way.

The IOUs are worth something when you hold it, so long as you are able to recover the actual value, and interest if any.

But when you cannot, the giver of IOUs cannot pay or defaults, you have nothing. Thus your IOUs are worthless. Putting the other guy in jail is useless as you are probably contributing to his welfare in jail through your taxes.

China's IOUs are worthless simply because it is not a country ruled by law. They are commies, for goodness sake! Since when had any commie made good their promises when one is out of favour? You can't fight them, for they are more vicious and underhand than you. You can't sue them, because their judges toe the party line.

You are on your own when you accept IOU from China. The chinese masses are screwed. Hopefully may the corrupt CCP truly reform after 20 years of BS, for the sake of the common people.