Quote:
Originally Posted by DJ's left nut
I saw someone that said "hey, y'know all that US debt that the Chinese hold? Tell 'em to **** themselves...."
I mean, I know in my heart of hearts that this is wildly simplistic and ultimately not a real answer for a variety of reasons. I mean, the major reason being that we had ostensibly told them to go **** themselves WELL before this. If China decided to call all their notes due, we'd have just told 'em "nah, you can come take it..."
But still - it's a cathartic thought.
Ultimately China had better tread real lightly for the foreseeable future. It wouldn't take much of a catalyst for the whole world to simultaneously decide that a regime change is in order. At this point even Russia wouldn't bother stepping in the middle.
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I’m no expert but I think the Fed owns more debt than China. I think Japan does too. Doing something that creates uncertainty in the stability of the US promise to pay its debts (especially when it’s less than 5% of what’s held) probably wouldn’t work. Might make it harder and more expensive to borrow all that sweet infrastructure money.
But, again, I’m no expert.