[Orange1998]

Its a world economy now plenty of buyers. Our leaders should be ashamed of trusting commies.

[curiosity]

There are always buyers, but the question is at what price. If you start selling off any asset in large quantities in any market, you're going to cause the price to tank. So sure, they could sell off their dollar-denominated assets, but that would cause the dollar to tank. That, in turn, would cause the dollar price of their exports to the US to skyrocket, choking off demand and throwing their heavily export-dependent economy into a tailspin.

Of course, it would hurt us too by increasing inflation and real interest rates, which if bad enough, could drive us into a recession. But I don't see any reason to think it would hurt us any worse than it would hurt China.

Hence I don't think this is a credible threat. They're just blustering.

Still, I do think we're borrowing way too much. We've got to get our deficit spending under control, and individuals need to save more. Relying on foreigners to finance our massive consumption binge is just plain not healthy.