Author: dragon8

The USA is Bankrupt   [Copy link] 中文

Post time 2014-9-13 23:42:29 |Display all floors
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Post time 2014-9-13 23:49:00 |Display all floors
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Post time 2014-9-14 00:06:20 |Display all floors
ll利 Post time: 2014-9-13 23:49
Not Americans, The Federal Reserve.

US treasury is the borrower, not the Federal Reserve. Two different entities. The biggest holder of US debt issued by US treasury is the Federal Reserve.

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Post time 2014-9-14 00:13:17 |Display all floors
ll利 Post time: 2014-9-13 23:42
China too is in terms, printing up money, its called "write downs"

Yes, People's Bank of China can create more RMB if they want. No one else can do that. It is not called write downs it is called expanding the central bank balance sheet.

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Post time 2014-9-14 00:23:16 |Display all floors
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Post time 2014-9-14 00:26:59 |Display all floors
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Post time 2014-9-14 00:30:04 |Display all floors
St_George Post time: 2014-9-13 21:11
Americans have obligations of 17 trillion dollars of foreign debt.

All bonds have maturity dates, they cannot be called before the maturity date.

The problem for China is what it will do with all the US dollars it holds. When USA pays back maturing loans, it pays back in US dollars. China has two options, invest the money back to new bond or other investment in US dollars OR convert the US dollars to some other currency. There are not so many currencies that can be invested and China already holds holdings in all major currencies.

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