Originally Posted by Guest

China bought US treasuries because they were TOLD to buy US treasuries if they wanted to play with the big boys. That is our hold over them. When someone owes you a $ trillion, you don't want anything happening to them, China won't attack. All the "big players" have stakes in each other. It keeps the petty squabbling to a minimum, keeps it from getting out of hand.

China won't sell their treasuries. Just like Saudi Arabia won't sell it's treasuries if the courts decide to blame them for their role in 9-11. It's MAD, mutually assured destruction. The world financial markets would implode if they sell. Nobody in power wants to see the world implode. That's WHY they manipulate everything, blow bubbles, reduce interest rates, etc.

The US would implode if interest rates went up. Do you know what the interest paid on $20 trillion ($20,000,000,000,000) is? Lets say the interest rate is 2.4% https://www.treasurydirect.gov/govt/...16/2016_02.htm We're paying $ 480 billion ($480,000,000,000) now, if interest rates went up to 6%, where they SHOULD be, they'd be paying $1.2 trillion ($1,200,000,000,000) a year in interest. They artificially keep rates low so they can make the minimum interest payment, the underlying debt just gets rolled over into new debt and never paid. The whole think is a scam.

War is ALWAYS an option when they want it. It changes the entire debt structure, old debts extinguished, new debts owed. It also gets rid of a lot of young men, doing wonders for the unemployment rate when things need to be rebuilt.