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Originally Posted by Guest
China isn't going to "call in the debt". They're holding bonds. Why do the uninformed comment?
When you owe someone over a $ trillion, it's their problem as much as yours.
We gave China paper, they gave us stuff. Who go the better deal?
They "call in" a $ trillion in debt, we tell them to come and take it. There's a war and they don't get paid anyway. You think the Chinese are going to come over here and take over? More guns than people in America, good luck with that.
For the most part, we're in agreement...but not with China. The "powers that be" the truly wealthy aren't going to give it up to Chinamen. China is being used more than it's using others. The Chinese are outsiders.
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Bonds can be cash or sold before their due date. China has recently sold some of their US Treasuries.
China Sells U.S. Treasuries to Support
China has bought US Treasuries to keep the value of the currency down. This makes their products cheaper, and our more expensive. We know what they are doing, and we keep on letting them do it. Who is the fool?
If China calls in the debt, we can either raise taxes to pay them, or just print money, and cause the return of inflation. War is not an option.
Trump solution of placing a high tariff is just noise to get votes from the uninformed.