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tkdguy

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Taking a stand against China is wonderful, until you realize that we have allowed our economy to be based solely on their good graces. 

 

I have often wondered what th US would look like if China called in their marker on our debt to them.  Would it be total economic collapse, or would they accept land instead? 

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6 minutes ago, Duke Bushido said:

Taking a stand against China is wonderful, until you realize that we have allowed our economy to be based solely on their good graces. 

 

I have often wondered what th US would look like if China called in their marker on our debt to them.  Would it be total economic collapse, or would they accept land instead? 

 

Oh, trust me. I was worried about the whole 'hey, love you China' stuff for awhile now, before it was cool even. I get that it was born of a way to keep them from cozying up with the USSR, but it backfired in a lot of ways. Chief being their grip on our economy. We can ween ourselves off them , moving stuff to India and so on... but it won't be easy and I'm sure Big Biz will be whining the whole time 'But there's money there!" etc

 

 

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3 minutes ago, Pattern Ghost said:

 

Which India will then outsource to China. They've been doing that for years. Hard to find the story I read before b/c Google is stuck on the guy that outsourced his job to China article, but here's a small example.

 

Nargh.

I could go into more opinions but I should probably save that for the politics thread, sorry all, but good point. Thanks for the link

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8 hours ago, Duke Bushido said:

 

 

I have often wondered what th US would look like if China called in their marker on our debt to them.  Would it be total economic collapse, or would they accept land instead? 

 

This is literally impossible.  There is no "marker".  That's not how treasury notes work.

 

What could happen is for China to dump some of its T-notes on the international market at a discount, thus throwing its own money away in order to cause some inflation in the U.S.; alternatively, it could dump all of it, and crash both economies (and probably the rest of the world's).

 

The reality is that the U.S. and Chinese economies are linked tightly enough that they're almost one economy; you can't negatively affect one very much without negatively affecting the other.  This has pros and cons, but it has the effect of preventing widespread war in Eastasia, so I'm mostly okay with it.

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On 11/20/2019 at 6:44 PM, Old Man said:

What could happen is for China to dump some of its T-notes on the international market at a discount, thus throwing its own money away in order to cause some inflation in the U.S.; alternatively, it could dump all of it, and crash both economies (and probably the rest of the world's).

 

It wouldn't even do that. China holds ~5% of US government debt. If they sold all their T-bills and refused to buy more, they'd lose money and some other government would buy it instead.

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