Quote:
Originally posted by Porsche-O-Phile
The Chinese will call in all U.S. debt and bankrupt us overnight.
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The only hitch in this equation is that the US government prints the money that they owe. So when the bill comes we are going to print all the money the chinese want. Only problem is it'll be worth nothing. Not to say that doesn't screw anyone who has been saving in US dollars, but that is my prognostication and I am sticking to it.
Also, Americans make up 20% of the purchasing power of the world. Without us China loses 1/5 (or more) of all its income. They need to keep buying our debt, because if they stop then they lose that income. China sustains life off of the money we spend. If Americans were smarter consumers we do not "need" China to survive. So do not sell out America just yet, we did just borrow at between 1 and 5%, if you have to go into debt America just picked one of the best times in history.