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So? How is it interesting? Just another fear mongering post about China.
It's the part of the right wing urban legend...China buys all the US debt it can get it's hands on....then for some strange reason will decide in the future to stop buying our debt..and will begin badmouthing the US financial system...thus driving their own multi-Trillion dollar investment in this country to zero.
That was a play on words - meaning that we are paying them a bunch of interest on the loan.
No fear mongering - that's fact-mongering. Who's the adult that will deal with this?
What's so special about China holding the debt as opposed to any other country? If you're worried about the debt in general, then there are a ton of other threads about it.
It's the part of the right wing urban legend...China buys all the US debt it can get it's hands on....then for some strange reason will decide in the future to stop buying our debt..and will begin badmouthing the US financial system...thus driving their own multi-Trillion dollar investment in this country to zero.
Makes sense right?
It would help if you had a clue about how bond markets work before assembling that strawman.
(In before padcrasher makes up a story about how he's supposedly involved with the financial markets or knows people who are.)
It was also "very interesting" in 2007 when the figure was the same 1.2 trillion. Should it be more interesting now? What is interesting is the fact that certain people have been saying that China is not interested in US debt anymore, but that information seems to be false.
Last edited by Finn_Jarber; 03-01-2011 at 06:32 PM..
Even though overall holdings have gone up, the foreign central banks who are buying them up are in the same deep s**t economically that we're in. China's holdings have actually dropped. The point is, that when QE2 inevitably fails, QE3 may very well bring instability in the bond markets and trigger sell off and zero demand for our treasuries.
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