They have already expressed fears that the depreciating US dollar has made Treasury Bonds lose much of their value. Japan has also been getting rid of its US dollars for fears that if they keep it for too long, its value will dip much more. China has also tersely asked the US to confirm that its bonds do not lose any more value – the US has refused to confirm that. . . .
What happens if China refuses to accept US Treasury bonds in future and insist on being paid in US dollars?
April 4, 2010
We will be in deep trouble, but more importantly what are you doing to make money in these trying time?
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Hope this helps.
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We would have to print more money to pay it off or they would begin to sell our debt to other countries, devaluing our currency more.
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You will now learn why the “national debt” is finally going to come back to haunt the United States. For decades, politicians liked to blab about “how bad the national debt is for America”, but nobody does anything, because it means raising taxes and losing their cushy congress or white house job (except for Clinton, who used his budget surpluses in the late 90′s to pay down billions in debt)
That is, nobody will care until foreign investors decide it’s not worth investing in U. S. debt anymore, pick up their toys, and go somewhere else to play.
The politicians, both Republican and Democrat(with the blessing of the voters) spent trillions and trillions and trillions on worthless pork projects over the past two decades, while cutting taxes and living in an ocean of red ink, with countries like China buying up the debt and being paid interest on that debt. . . they own a massive lump of U. S. government “credit card debt”, and the U. S. pays a “low APR” of about 3 or 4%.
When China (quickly followed by the rest of the world) finally decides to dump their U. S. treasuries, you will learn the meaning of financial pain. How about 20% mortgage interest rates? 60% credit card APR’s? The stock market would crash (I mean REALLY crash) because people would need more cash to survive. The inflation caused by un-wanted government debt will destroy America.
But that’s all OK, because that’s what the voters (all of them, democrat and republican) wanted. Charge it and let someone else pay for it.
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You know how we have the best military in the world, well. . .
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