Debt (economic, social, generational, etc.)

[NewYorkBuck]

Saying this would hurt is putting things mildly....

You are a money trader right? would there be buyers for the dollar or would this sell-off not be countered by bargain hunters?

How many times have I said this? We have so little fiscal discipline that we borrow enormous amounts of money from a country where the monthly wage is $5 per month. We let it go on and on and on. Now, the Chinese have us totally by the balls. Never mind if they stop buying our debt, if they ever decided to liquidate all of their Treasuries, interest rates would go through the roof. You could say hello to the 16% mortgage again. It would totally and completely bring our economy to its knees, and they know this. Yes, it would hurt them too as many of the bond would be redeemed at a discount to what they paid, but it would be nothing compared to what it would do to us.

 

[fourteenandoh]

How many times have I said this? We have so little fiscal discipline that we borrow enormous amounts of money from a country where the monthly wage is $5 per month. We let it go on and on and on. Now, the Chinese have us totally by the balls. Never mind if they stop buying our debt, if they ever decided to liquidate all of their Treasuries, interest rates would go through the roof. You could say hello to the 16% mortgage again. It would totally and completely bring our economy to its knees, and they know this. Yes, it would hurt them too as many of the bond would be redeemed at a discount to what they paid, but it would be nothing compared to what it would do to us.

I don't think China would follow through for this reason alone. It's a global economy now. If we go down, everyone else is going to go down with us. Europe, Russia, Asia etc etc.