I’m SOOOOO sick of hearing “the Chinese could just ‘call in’ their ‘loans’ to us……”
Look if you’re going to comment on something, read up on it and learn how it works.
China’s central bank buys Treasury securities – mostly long bonds – at auction, because it keeps foreign currency reserves. You can’t put Treasurys back to the federal government. You can ask that the Fed sell your bonds FOR you at MARKET prices, at open auction. Arguably China could use this vehicle to ‘dump’ Treasurys but that would de-value their foreign currency reserves – it would harm them a lot more than it would harm us.
There’s no put – no option to just sell back to the federal government at face value.
Yet Libs keep talking as if China or any other bondholder could do this?
Do they even know what a put IS?
Originally posted 2009-08-02 20:09:53.
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What libs are you talking about?
No
The point is having China as a creditor is not very smart…now go ahead and argue that!!!
You just went over 99.99% of people’s heads with that.
For the most part, people on this forum only respond to red herring questions. Answering a red herring question only takes an opinion, not knowledge. And, opinions are like bellybuttons, everybody has one.
And besides, liberals think the economy is still the feudal system.
A breath of common sense!
Thank God!
The amount of debt the US carries needs to be measured against the size and value of our entire economy in order to be meaningful. As a percentage of that, it is relatively small. Although I’d still like to see it lowered.
They don’t care what it means,because their goal he is to bash the president,and advance their agenda.
I agree with Aslan. anybody that uses this argument has no ability to discern what you are saying. Hopefully they may use this to look further into their beliefs however I doubt very seriously they would put forth the effort.
I have pointed to this before and am not going deep into again but having foreign investors including china can an has brought profits to this country in the past.