No, you won't. China makes more than half of the things you use daily and without them US economy will collapse. Also, if you owe somebody, you pay them back, otherwise it's stealing.
China and the US are dependent on each other economically. We need their production power and they need us as consumers for their products. If one country decided to put the economic squeeze on the other, it would essentially be a declaration of war, which means mutual destruction.
Both countries can nibble around the edges and saber rattle all they want, but this dynamic isn't changing anytime soon.
No. It was President Nixon who informed us all about the Chinese. These are very tricky people and cannot be trusted under any circumstances. They are scheming right now about repossession, while people like you twiddle their thumbs and predict doom. That's why we need Trump back. He knew how to handle the Chinese. They wouldn't dare look sideways at America if Trump were in power.
No. It was President Nixon who informed us all about the Chinese. These are very tricky people and cannot be trusted under any circumstances. They are scheming right now about repossession, while people like you twiddle their thumbs and predict doom. That's why we need Trump back. He knew how to handle the Chinese. They wouldn't dare look sideways at America if Trump were in power.
You couldn't even change the Afghani govt in 20yrs there
The US will never default on debts issued in its own currency.
All we have to do is print up a trillion dollars and give it to China if they redeem their US Treasuries.
That could cause a decline in the value of the USD if we couldn't borrow from someone else to make up the difference, but there's no possibility of a default unless our government truly becomes a suicide machine. We can borrow from other people or print all the USD we need.
This post was edited 6 minutes after it was posted.
The U.S. will never default. The world would basically collapse. Plus, China doesn't want them too. Posturing back and forth over the debt is like a Cold War 2.0.
Are you referring to percentage of U.S. Treasury Bills, U.S. Treasury Notes and U.S. Treasury Bonds held by People's Republic of China, Chinese large corporations and Chinese whale investors? It is not wise to worry about U.S. Treasuries defaulting at this time. If there comes a time when U.S. Empire is having difficulty paying interest on Bills, Notes & Bonds and having difficulty providing services to citizens of U.S., U.S. will do what all empires do: shrink military and reduce military expeditionary missions.
You are out of touch with the current US budget if you think reducing military spending is a way out of this. We have already crossed the border where just the interest on the debt has EXCEEDED defense spending. And much of military spending is not easy to cut, since it is either payments to people, or to maintain facilities or equipment, not on missions.
And the budget deficient to defense spending ratio is just going to get to continue to get worse. So no, with a deficit this large, don't plan on reducing defense spending a little as a way out.
The US will never default on debts issued in its own currency.
All we have to do is print up a trillion dollars and give it to China if they redeem their US Treasuries.
That could cause a decline in the value of the USD if we couldn't borrow from someone else to make up the difference, but there's no possibility of a default unless our government truly becomes a suicide machine. We can borrow from other people or print all the USD we need.
Never is a long time. You are assuming USD will always be the predominate international currency. In early days of WW2, British Pound was the predominate international currency. Printing USD only seems harmless because wealthy investors, large international corporations and most governments buy U.S. Treasury Bills, U.S. Treasury Notes and U.S. Treasury Bonds. Bonds and bond yields have an inverse relationship. We don't know which currency 100 years from now will be the preferred international currency.
China and the US are dependent on each other economically. We need their production power and they need us as consumers for their products. If one country decided to put the economic squeeze on the other, it would essentially be a declaration of war, which means mutual destruction.
Both countries can nibble around the edges and saber rattle all they want, but this dynamic isn't changing anytime soon.
No. It was President Nixon who informed us all about the Chinese. These are very tricky people and cannot be trusted under any circumstances. They are scheming right now about repossession, while people like you twiddle their thumbs and predict doom. That's why we need Trump back. He knew how to handle the Chinese. They wouldn't dare look sideways at America if Trump were in power.
Re "he knew how to handle the Chinese": Literally all Trump did with China was impose tariffs on Chinese imports (literally taxes on American companies), because he knew that when he said "tariffs are actually a tax you can charge to other countries, China's paying us money, believe me", that you guys would all believe him. The trade deficit with China went up, Trump lied that it had gone down, you guys believed him again. 4 years later, he now says "as you know, China paid us hundreds of billions of dollars". This is a lie, because they didn't pay the US any money whatsoever, but he knows you guys will still believe him.
The US will never default on debts issued in its own currency.
All we have to do is print up a trillion dollars and give it to China if they redeem their US Treasuries.
That could cause a decline in the value of the USD if we couldn't borrow from someone else to make up the difference, but there's no possibility of a default unless our government truly becomes a suicide machine. We can borrow from other people or print all the USD we need.
Never is a long time. You are assuming USD will always be the predominate international currency. In early days of WW2, British Pound was the predominate international currency. Printing USD only seems harmless because wealthy investors, large international corporations and most governments buy U.S. Treasury Bills, U.S. Treasury Notes and U.S. Treasury Bonds. Bonds and bond yields have an inverse relationship. We don't know which currency 100 years from now will be the preferred international currency.
Exactly, most of the 20th century was dominated by the U.S. dollar, the 19th century was dominated by the British pound sterling and the 18th century is was the Spanish dollar.
We only think the USA and the dollar will remain dominant because that's all we've known in our lifetime.
Palo Verde nuclear power plant (the largest nuclear power plant in the US) cost of construction was $14 Billion in today's dollar. There are 93 nuclear power plants in the US. So I guess they could probably take all of them.
$859 billion gets you a lot of "stuff"
This scenario is very highly unlikely. The US has a strong incentive to avoid default, and there are mechanisms in place to prevent it. The US debt to China is primarily in the form of US Treasury bonds. These are not loans with collateral (le'ts say like a mortgage on a house). If the US were to go ahead and default, it would mean the US failing to make interest payments or repay the principal when the bonds mature. I'm unsure you even understand the nature of the US debt to China and the potential consequences of a default.
The US will never default on debts issued in its own currency.
All we have to do is print up a trillion dollars and give it to China if they redeem their US Treasuries.
That could cause a decline in the value of the USD if we couldn't borrow from someone else to make up the difference, but there's no possibility of a default unless our government truly becomes a suicide machine. We can borrow from other people or print all the USD we need.
Never is a long time. You are assuming USD will always be the predominate international currency. In early days of WW2, British Pound was the predominate international currency. Printing USD only seems harmless because wealthy investors, large international corporations and most governments buy U.S. Treasury Bills, U.S. Treasury Notes and U.S. Treasury Bonds. Bonds and bond yields have an inverse relationship. We don't know which currency 100 years from now will be the preferred international currency.
I said that we would never default on debts issued in our own currency.
Sure, if we have to issue debt in some other currency that would make a default more likely.
China and the US are dependent on each other economically. We need their production power and they need us as consumers for their products. If one country decided to put the economic squeeze on the other, it would essentially be a declaration of war, which means mutual destruction.
Both countries can nibble around the edges and saber rattle all they want, but this dynamic isn't changing anytime soon.
No. It was President Nixon who informed us all about the Chinese. These are very tricky people and cannot be trusted under any circumstances. They are scheming right now about repossession, while people like you twiddle their thumbs and predict doom. That's why we need Trump back. He knew how to handle the Chinese. They wouldn't dare look sideways at America if Trump were in power.
what happens?China is screwed, that's what happens. It is in no one's interest for the US to default on its debt, which is why it will never happen.
At some point we will either default on our debt or we will have to print the money we need and we will have hyper inlfation if we stay on the course we are on.
They wouldn’t default. They’d simply print money to cover the difference, deflating the value of your currency. Obama did this quite often. Biden will likely do this leading into the election to bring down interest rates (rather than cutting spending, which would have a similar impact withou lessening the value of a dollar). Buying up the bonds that are not purchased by others in an attempt to keep interest rates artificially low.
I don't know why people are downvoting this person's post. He or she is correct. The US will never default. They will just print as much money as is necessary to cover the debt, resulting in inflation.
They wouldn’t default. They’d simply print money to cover the difference, deflating the value of your currency. Obama did this quite often. Biden will likely do this leading into the election to bring down interest rates (rather than cutting spending, which would have a similar impact withou lessening the value of a dollar). Buying up the bonds that are not purchased by others in an attempt to keep interest rates artificially low.
I don't know why people are downvoting this person's post. He or she is correct. The US will never default. They will just print as much money as is necessary to cover the debt, resulting in inflation.
It's incorrect. Printing money keeps interest rates low which encourages economic activity and grows the economy. Obviously limits to this but that was mostly how the recovery post-2008 crash was achieved.