Could you imagine if China called in our debt

I hate that commercial where the Chinese say "look who is working for us now, haha. Heck I think we should default on out debt to them just for making that commercial, or did we make that commercial poking fun at the US Government. Idk. huuummm

http://abcnews.go.com/Politics/national-debt-ceiling-fight-limelight-interest-rates-stock/story?id=13351363

Dazed&Confused wrote:I hate that commercial where the Chinese say "look who is working for us now, haha. Heck I think we should default on out debt to them just for making that commercial, or did we make that commercial poking fun at the US Government. Idk. huuummm

http://abcnews.go.com/Politics/national-debt-ceiling-fight-limelight-interest-rates-stock/story?id=13351363

If that happed it would be called an "Economic collapse".

China would never, ever, call in out debt as long as we build things there.


If China called in the debt that we owe them they would, simply put, have to buy Chinese Yuan with the money. If they want to build a school or a factory or a nuclear bomb they have to spend Yuan to do it. They can't buy things with American Dollars. If they called in their debt it all at once it would make the value of their currency sky rocket. It would at least double and more likely go higher than that. At the moment the yuan is undervalued and one yuan is worth about 15 cents. They have to keep things cheap there so American companies will continue to make lead filled toys and things there. American companies have said that if the wage in China increased as little as 10 cents that it would be just as cheap to make things here. If one yuan became worth 30 cents over night their economy would collapse because they would lose all the business that goes there for cheap labor. It wouldn't come back here though, it would move to some other slave wage country like Vietnam.

So as long as they want our jobs they will never call it in. This is why Dick Cheney said in 2003 that "deficits don't matter" and he was right.

This is the fundamental flaw in the tea party line. they are concerned about something that isn't That dire compared with the state of our economy and the unemployment crisis.

Well perhaps they should forgive our debt since we really control the strings. Dazed.

Called in our debt? How about if we told them to go scratch themselves with our debt.

What if we said "We ain't paying" or "We'll just pay the principal"

Hey, on that issue you are my kinda person. Yepper! Dazed