Who Is Going To Buy Our Debt If This War Causes China, Russia And The Rest Of The World ...

The Economic Collapse ^ | 9/6/13 | Michael Snyder

[grumpygresh]

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.  At this point, survey after survey has shown that the American people are overwhelmingly against an attack on Syria, people around the globe are overwhelmingly against an attack on Syria, and it looks like the U.S. Congress is even going to reject it.  But Barack Obama is not backing down.  In fact, ABC News is reporting that plans are now being made for a "significantly larger" strike on Syria than most experts had expected.

[Jim from C-Town]

Just an FYI. We send chickens to China. They send very few to the U.S. Verging on none and NO fresh or ‘Fresh Frozen’ chickens.

The U.S. Agriculture industry is so competitive that we can produce a chicken, ship it to anywhere in the World AND do so with a profit at a lower cost than ANY country can produce and distribute a chicken within their own country.

That is why we send 325,000 metric tons of Chicken to China annually, most fresh and ‘fresh frozen’ poultry, whereas they send a mix of poultry in prepackaged, IE processed food products, Often RAMAN type dried noodle and food products in return at the rate of 14,000 metric tons per annum. Most of that is our own poultry products reprocessed into dehydrated parts of packaged foods and specialty items.

Why do you think we ‘need’ all those Mexicans at Tyson doing the work that American workers ‘refuse’ to do. Or as I like to say: Working as slaves!

http://www.fas.org/sgp/crs/row/RL34080.pdf

[Toddsterpatriot]

How many here know the Fed owns over 34% of american debt now?

The Fed owns a bit over $2 trillion in Treasuries. Your math is off.

[alexander_busek]

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? [Emphasis my own.]

To whom would they sell the U.S. debt? I mean: What idiots would buy it? And what do we care what suckers hold our worthless I.O.U.s?

Regards,

[The Old Commander]

You don’t know what the Fed. owns. That is why we need an audit of the Federal Reserve. You cannot believe anything the Government says or reports.

[PieterCasparzen]

The country is in much worse financial shape than Detroit. The only reason we don’t see it is because the feds can print money to hide reality.....for a while.

The Federal Reserve creates dollars, i.e., manages the money supply; the Treasury prints paper dollars to replace worn out paper dollars.

If the Treasury actually printed whatever Congress needed to spend, the Treasury would not need to borrow, i.e., issue Treasury debt.

[cripplecreek]

Yet we’re still broke and spending like drunken sailors.

[PieterCasparzen]

As a "troubleshooter", I constantly ask "why", constantly think, analyze.

Why would Congress keep spending more than they take in taxwise ?

And then why would the Treasury simply not create the overspending difference ?

Why would the Executive and Legislative branches want the US government to take on $17 trillion in debt ?

Really - do they have anything to gain from all that debt piling up ?

The interest on the debt is paid out of tax revenue.

If Congress simply wanted to spend in order to throw government dollars around to help themselves stay elected...

Why in heaven's name would they want to spend money on INTEREST ?

The individual voter wants stuff - they don't benefit at all from the government paying interest on debt.

If the Treasury just created new money instead of borrowing via the international banking system, Congress could literally spend all it wanted to - and not waste a penny on interest.

[marron]

What is going to happen if China, Russia and many other large nations stop buying our debt

Are they still buying our debt? I understood that by buying cyber-ink by the cyber-trainloads, we had replaced the need for actually selling our debt.

[marron]

If the Treasury just created new money instead of borrowing via the international banking system, Congress could literally spend all it wanted to - and not waste a penny on interest.

Exactly. If you are going to debauch the currency, why compound the debauchery with unsustainable interest? If you are going to print, then print.

[Toddsterpatriot]

http://www.federalreserve.gov/releases/h41/current/h41.htm