Skip to comments.Who Is Going To Buy The US Debt If This War Causes China, Russia To Turn On Us?
Posted on 09/07/2013 1:48:47 PM PDT by RKBA DemocratEdited on 09/07/2013 2:39:18 PM PDT by Admin Moderator. [history]
Full title: Who Is Going To Buy The US Debt If This War Causes China, Russia And The Rest Of The World To Turn On Us?
Yesterday we implied a difficult question when we illustrated the huge size of US Treasury bond holdings that China and Russia have between them - accounting for 25% of all foreign held debt - implicitly funding US standards of living (along with the Federal Reserve). The difficult question is "Can the U.S. really afford to greatly anger the rest of the world when they are the ones that are paying our bills?" What is going to happen if China, Russia and many other large nations stop buying our debt and start rapidly dumping U.S. debt that they already own? If the United States is not very careful, it is going to pay a tremendous economic price for taking military action in Syria.
(Excerpt) Read more at zerohedge.com ...
How much longer can the US House of Cards defy gravity?
Yesterday we implied a difficult question when we illustrated the huge size of US Treasury bond holdings that China and Russia have between them - accounting for 25% of all foreign held debt - implicitly funding US standards of living (along with the Federal Reserve). [emphasis added][groan]
The array of nations around the world will simply foreclose their various mortgages on this territory once known as “the United States of America”, and treat it like they would a territory in central Africa, or an island out in the middle of the ocean. Come in with their various machinery for extraction, scoop up the resources, and haul it away.
Enter the era of “new colonialism”.
That depends of the intelligence of this administration....
Oh wait, never mind.
Meanwhile the Chicoms are manipulating their economic data and are building ghost cities in order to prop up their numbers. Who really has the bigger house of cards here? No matter how commie the man in the White House is, I don’t think that we can outdo the Chinese. Maybe if the amnesty pimps have their way, of course. Then we’ll have them beat. As for the Russkies, you don’t see any Russians with any wealth sticking around in Moscow because it is so nice and prosperous there.
It will print enough money to buy all the debt if need be. Even though financing the government isn't in its mission statement; this is one of the reasons Congress approved its creation.
The only thing saving us is that we’re the ChiComs biggest customer. Otherwise, it’s always the banker who has you by the balls.
To quote the World's Smartest Woman, What difference does it make ... the currency is already irreparably damaged ... we can't possibly borrow and successfully repay what we need right now to fund ongoing operations ... our only option is to print fiat until the dollar completely collapses ... and we are going to do exactly that until the idiot public finally figures out that they are carrying worthless paper trash in their wallets!
“It will print enough money to buy all the debt if need be. Even though financing the government isn’t in its mission statement; this is one of the reasons Congress approved its creation.”
It probably will eventually. The problem is, it also risks utterly destroying the currency in the process.
Dumping US debt? To who?
Barack. Obama. Does. Not. Care.
He doesn’t care if we go belly up. He wants it. They haven’t figured that out yet?
Isn’t that exactly what Obama had in mind from the moment he ran for POTUS?
And no one in the House nor Senate had the spine to stop him or slow him down.
Our elected critters are as guilty as Obama of the downfall of the US.
FOOD for them will become quite expensive. We just will not export food any longer unless it is in return for our debt. Anyone that doesn’t think we have strings to pull is mistaken. And our armed forces would be used to defend our borders and allies. If we didn’t have OBAMA we wouldn’t need any of the outside energy resources and could explore for minerals and bring manufacturing back to the USA. We would and could be back into making things, I’d say we would/could cut off the internet between us and them as well. No connections would probably be good for us as well.
The Chinese give us money to give to Taiwan to protect Taiwan from China. Who is dumber is a toss up there...
the Mexican drug cartels?
Debt problem? We don’t have a debt problem. As long as the Fed continues to invent $20 billion in new money each and every week and faithfully hand it over to the Treasury, the government no longer needs to borrow money. And as long as the government doesn’t need to borrow money, interest rates will remain low. What could go wrong with that?
Obama doesn't give a rap if he is eventually hated by Americans who see their country collapse around them and their comfortable middle class lives destroyed. Behind the big grin Obama despises all of us for U.S. economic and military power as well as our independent way of life. He wants to see America brought to it's knees and he's more than willing to risk being hated (for attacking Syria) if that triggers events that lead to the demise of the United States. The pundits nonsense about Obama being 'naive' or 'fumbling' willfully ignore his true motives.
They can also nationalize private retirement accounts and “invest” them in treasuries. The idea has already been kicked around.
Seems like if we wanted to play world cop, we would want to get our fiscal house in order. Why does Hussein want to play world cop?
Foreign investors aren’t going to buy it for long either way. The quantitative easing prop for that is reported to be ending. Bond yields will go up, while prices fall, then bond collapse. Pensioners depending on bonds will be left with little or nothing. Interest rates will skyrocket. Business will slow down. Revenues will fall. Government layoffs. Vicious circle.