Quote:
Originally Posted by Sausage
Can you explain that ?
Are you suggesting you guys can just "not pay China back" ?? I hear that a lot from Americans.
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i mean the reason they buy our debt is 2-fold.
1. they have to put their moeny somewhere, u.s t-bills are historically THE place to do that and continue to be, China gets favorable worldwide credit ratings etc from this as well.
2. by buying our t-bills, the added cash adds to the u.s. overall credit pool, allowing americans to buy more chinese made shit on credit.
but if push came to shove, the u.s. could not pay out on those t-bills if china tried to dump them, *cash* them and it will be that way for a long time, prolly forever. they are worthless in that respect, the action of buying them simply perpetuates the credit system.
both sides need both sides, in fact, i'd wager china needs us slightly more but that's besides the point. the real cash money comes from consumer goods bought/sold daily. we are china's biggest customer. would you fuck your best (by far) customer in the ass if the majority of your worth is based on them? of course not.