China is Unloading its Treasury Bonds

[cavanami]

Me thinks that China can not self-sustain itself while the USA can. It may be uncomfortable for the USA to do so, but very possible.

China needs oil, additional food and a marketplace to sell their products.

 

Soooo, China may have the bigger problem(s)

[chuckwoww]

For sure they have a bigger problem. Huge population and limited resources. The problems in the US are more manageable. I think RayRay was talking about what would happen if the US stopped paying interest on the debt. I can't imagine how China would react to that.

[Bangkoktraveler]

When it comes to debt, GWB claimed in one of his speeches that the USA was not going to pay back the money it stole from Social Security and Medicare.

 

A country that steals from its old citizens is not much of a country in my opinion.

[cavanami]

...or the US just print up a pile of (worthless) dollars and say, "...he's the money we owe you, have a nice day".

 

This would be interesting to see!

[Bangkoktraveler]

What do you think they have been printing?

 

More money!

 

 

I would laugh my ass off if they put Obama's picture on our money.

[Central Scrutinizer]

...or the US just print up a pile of (worthless) dollars and say, "...he's the money we owe you, have a nice day".

 

This would be interesting to see!

 

 

 

 

And not far from the truth of it. :content:

[LizardKing]

They actually need to do that. There is a $4T hole in the economy, and no inflation to be seen. Seems to me the economy wants more dollars.

[chuckwoww]

I guess you agree with Bernanke. He sees deflation as the main problem.

[LizardKing]

I'm sure you remember as I do the screeches of the wingnuts about rampant hyperinflation by mid-2010 because of the stimulus. Uh, still waiting. Bzzzzzzzz, wrong again GOPers.

 

I do like him. I think he is a bright guy, and actually the right guy for the job right now.

 

Without his policies the past couple of years, I think this mess would have been a lot worse.

 

But of course, that's not to say I agree 100%, just mostly -- to clarify for the "black-n-white" GOPers. I know they struggle with nuance.

[chuckwoww]

Bernanke seems like a sensible guy to me. Of course he has to deal with Greenspan's cheap money. But how do you give people more spending money in a time of unemployment without dropping it from helicopters? And won't the free money end up in China anyway?