Quote:
Originally Posted by Jesus H Christ
well here is where the confusion is and let me explain it in simple terms. If you "invest" in a country or company you have an option to cash out at anytime regardless. That's called an investment. Now, if the country or company goes broke and your investment is gone, then they "owe" you money. In Short, China still has an option.
I have a few hundred Canadian dollars laying around from my last fishing trip..in your thinking, I could say the country of Canada owes me money.  |
Fuck, ok as i said, china has an investment yes but the US Treasury sold the bonds and must pay on demand, That is one reason the Fuckin Teabagger are complaining the deficit is so high. And what makes up the deficit? Debt owed by the Treasury. And who does the Treasury owe this debt to? The Fucking Bill Holder, whether they collect now or later the Treasury is in hock for the amount of said Bill. Only way they wouldn't owe the orignal holder is if that holder sells to someone else. Then they are in hock to the new owner. I am not disagreeing that China sees it as an investment but the only reason the TBills are sold are to raise funds for the government to operate and are sold with the promise the holder to be paid back.