US Debt

[Gargamel]

The USA owes China $900,000,000,000

I wonder what would happen if the Chinese called the loans in ?

[Blue Meanie]

Gargamel said:

The USA owes China $900,000,000,000

I wonder what would happen if the Chinese called the loans in ?

America wouldn't pay... Plain and simple.

[F93]

they won't call them in, cos America would say no. Then China will get angry, but what are they gonna do?

Stop exports to America? Ha, bye bye most of China's economy.

It's a win win situation for both countries... sort of... at least, in the short term...

[Gargamel]

But then everyone else would call in US Debts.

And the UN would use harsh words and everything

[Gargamel]

Blue Meanie said:

Gargamel said:

The USA owes China $900,000,000,000

I wonder what would happen if the Chinese called the loans in ?

America wouldn't pay... Plain and simple.

Seriously, Are you therefore suggesting that these loans are worthless? Why do the Chinese continue to lend.

[Parrot of Doom]

For the same reason that mortgage companies lend. If they called all the debts in, nobody would pay, and they'd go out of business.

[Blue Meanie]

Gargamel said:

Blue Meanie said:

Gargamel said:

The USA owes China $900,000,000,000

I wonder what would happen if the Chinese called the loans in ?

America wouldn't pay... Plain and simple.

Seriously, Are you therefore suggesting that these loans are worthless? Why do the Chinese continue to lend.

Amreica couldn't pay, and what do you think will happen if China calls it in? You think they will march towards national bankruptcy?

[Gargamel]

Just thinking what might happen longer term. Espcially if the USA keep pressuring the Chinese to let the currency rise.

Seems to be a major shift happening, I am not sure you can be a world superpower if you owe this much money ?

Can you ?

[Blue Meanie]

Gargamel said:

Just thinking what might happen longer term. Espcially if the USA keep pressuring the Chinese to let the currency rise.

Seems to be a major shift happening, I am not sure you can be a world superpower if you owe this much money ?

Can you ?

as someone said, The US and China are somewhat symbiotic. Lose the US, and Chine loses a huge market. What do YOU think will happen?

[Jimbeaux]

Gargamel said:

The USA owes China $900,000,000,000

I wonder what would happen if the Chinese called the loans in ?

They would go broke as well. It is M.A.D. only with money instead of missiles. ETA: ErnestM could give some factual opinions on this, he is one of those capitalist moneychangers.

Edited by Jimbeaux on Thursday 30th September 02:26

[jimothy]

Don't china also have huge USD cash reserves as well? If they wanted to pressure the US they could threaten to offload it cheap to devalue it - same as the US did to the UK during the Suez crisis IIRC.

[Bing o]

The US trying to impose trade sanctions on China:

http://www.bbc.co.uk/news/business-11437808