China Wants Thier Money Back

[Alibaba]

If half the USA thinks Obama has bankrupted the USA...

If half the USA thinks Bush has bankrupted the USA..

What does the Premier of China think about the $800+ Billion dollars he had lent us to cover our deficiet spending.

MyProps.org - Saturday Night Live - China Cold Open - Hulu Recently Added Videos

I thought this was a joke....

[kootenay]

Dont know what it was because the link only works in the USA. But when ever folks talk about debt they seem to limit the total to only the Federal debt. They seem to forget the debt owed by state and local governments and the debt owed to future generations on entitilement programs like SS and Medicare. All those trust funds used by countless governments to finance the reduction in stateing their deficits. You hear the total owed to china as 800 billion and the total debt as 12 trillion. Well you add up all of the above and you wind up owing China closer to 2 trillion and the total US public debt is actually over 50 trillion dollars. Thats greater than the GDP of the entire world to put it in perspective. China wont want their money back by the way because the dollar wont be worth the paper its written on if they do that they will simply begin buying US assets. In fact any hard assets. They will not care that in buying America they will be driving inflation up for Americans because getting hard value for worthless paper will be more important. So at some point in the future they will be coming with their bank book to collect your stuff. They wont want the money back they will want your car, your boat, your house. Oh yeah I forgot with the one child policy they will be short of women so they will probably be happy at some point to take a few daughters off your hands too in exchange for some of the debt.

[Alibaba]

Thanks for the Information.. Now i`m really sick..

You say the public debt is 50 Trillion.. Some economonist estimate it closer to 75 trillion.

You couldnt view the video.?? Try again, click the go button in the middle of the picture screen. Where do you live in the world.

As an American citizen and VietNam era veteran, I know we are bankrupted because of USA Military spending and manipulating of Intelligence and Events to keep up the spending. America needs to investigate these crimminals and confiscate thier wealth and money, return it to the treasury. I doubt it will happen..

[kredit]

I hope to see a great revolution ,soon,from google streets no doubt!

[Architeuthis]

INTERPRETER: Are we? Are we going to get our money? Because from what I read your country is in the middle of a serious recession.

OBAMA: Uh, while this is true, there are signs that our bailout has steadied the financial markets and our stimulus package has been effective in fixing the job crisis.

(Hu Jintao, yellowface, "speaks.")

INTERPRETER: I'm curious. How many jobs has it created?

OBAMA: Uh, so far, none.

(Hu Jintao "speaks.")

INTERPRETER: I see.

OBAMA: But our health care reform plan, we're confident, is going to lead to enormous savings.

(Hu Jintao "speaks.")

INTERPRETER: How exactly is extending health care coverage to 30 million people going to save you money?

OBAMA: I... don't know.

(Hu Jintao "speaks.")

INTERPRETER: And this "Cash for Clunkers" program-- I have read that you purchased many clunkers with our money.

OBAMA: Yes, we have.

(Hu Jintao "speaks.")

INTERPRETER: What does this word "clunkers" mean?

(Hu Jintao "speaks.")

OBAMA: Well, a clunker is a car...

(Hu Jintao "speaks.")

INTERPRETER: I know what a clunker is. And just so there is no misunderstanding, you are not allowed to pay us back in clunkers.

OBAMA:Of course not.

(Hu Jintao "speaks.")

INTERPRETER: You know, as I listen to you, I am noticing that each of your plans to save money involves spending even more money. This does not inspire confidence.

OBAMA: I assure you, you're going to get your money.

[Architeuthis]

The basic flaw is that China does not want it's money back but of course it does not want to lose it.

The USA will likely use inflation and a devalued dollar to lower the value of the debt. China does not want that but knows it cannot be completely avoided.

What China really wants is the value to stay high, or go even higher.

The real value of this debt is control. Canada knows this well but Canadians do not. The US is about to learn it though the citizens may not.

An example of debt value can be seen in the recent arms deal with Taiwan.

There is a not atypical Chinese response that I see:

One does not need to be an expert in Sino-American or international relations to see what the US arms sale to Taiwan reflects.

It shows America has no respect for relations, including its strategic partnership with China...

US arms sale to Taiwan reveals ignorance, disrespect

The value of the debt to China is in the unspoken control it gives them over the US. Canada has had to deal with this issue and knows that while it is not always easy it is better than picking a fight for little gain.

I suspect the US is not going to adjust well to this new reality, at least not at first. I have great respect for the American people and expect them to do fine in the long run but picking fights with China suggests a sharp learning curve.

[AE28]

So, what happens if China calls the loan?
Paul

[poopdeckpappy]

Originally Posted by AE28

So, what happens if China calls the loan?
Paul

Welcome to the 99.9% tax bracket

[kootenay]

China wont call the loan. It cant, it will simply start buying your assets with your dollars. In essense converting the dollars to hard assets that will not depreciate in value the way the currency will. Right now they are very active in the world aquiring commodity based assets using your dollars already. Do a search and look at their aquisitons in the past couple of years. Coal, Oil, Natural gas, steel....

[Architeuthis]

....oil sands....