Quote Originally Posted by kexodusc
Geez. Do you even understand why China holds so much US debt? They peg their currency to the US dollar and buying and selling debt is the only way they can do that. Cool part about that is, when the US economy sucks, it drags China down with it, so it's in their best interest to sustain an equilibrium of sorts.

The last thing China wants is to be repaid $800 billion worth of US dollars that are relatively worthless compared to when they purchased US dollar bonds...they would much rather be paid back $800 billion worth of US dollars that are the strongest currency on the planet.


The reason CHINA holds so much debt is that is all we can pay them with, since we produce next to nothing anymore.
AND of course China would prefer to be paid with "valuable" US dollars instead of the worthless paper we put out that is backed by NOTHING.
Of course they dont really have a choice in the matter do they?
Going to be interesting when China tries to start reposessing US property to collect
on the debt they are owed by us.
Which is not going to happen of course.
The US is going into repudiation sometime this year, which will end us as an economic power.
Several states have already written and passed articles of succession(like New Hampshire,
Utah, ARIZONA, ETC).
When the US economy collapses a total military dictatorship is all that will be possible.
Think the US "cant" collapse? ASK THE RUSSIANS.
Just because something has been a certain way doesnt mean it will ALWAYS be that way.
I remember when candy bars were a nickle, and a drink in a machine was 7 cents,
and I am not that old.
This is not the same country that surrived the great depression, we are not made of the same stuff as our grandfathers.
And this wont be the "great depression", it will be the greater depression
Of course you dont beleive me, and thats fine.
Because you WILL.