China accumulating massive amounts of US Debt and threatning to sell

[rive0108]

More Bad News
China owns massive amounts of US debt In the form of US Treasuries, Currency, and Reserves, and Is in the process of vastly accumulating more faster than any other Nation. They are threatening to dump massive amounts of debt which would in turn cripple the US economy, and then the U.K. economy. they have in excess of $407,000,000,000 (407 Billion) dollars worth of Treasury Bonds and Currency, and 1.3 Trillion dollars in Reserves...

Both the US and the UK are Trillions of dollars (pounds) in debt, and both Countries are throwing more and more money at the crisis In the form of Stimulus and Bailouts. The Debt of the two Countries alone exceeds $50,000,000,000,000 (50 trillion- or the equivilent of half a Million dollars per household). The Pound and the Dollar could become worthless overnight and the Governments could go bankrupt and may even collapse.

Anyone like to hazzard a guess on the devastation that would result from such a sale to the Global Economic Meltdown currently at hand? Or the fallout of this massive debt in the near future even if an economic Depression is avoided?


If you want to know the real state of the economy and how the "US debt/deficient" really works you need to watch the following video clips.
note- these reflect the US economy prior to the 2009 Trillion dollar "stimulus"

Source-economist Peter Schiff :
http://www.youtube.com/watch?v=kZtKlAjwhqg

Source-CNN Lou Dobbs/Fox News Glenn Beck/Bloomberg Report:
http://www.youtube.com/watch?v=CL0Krzb5Bp0
http://www.youtube.com/watch?v=fiwH9ZElBiI&feature=related
http://www.youtube.com/watch?v=62Vsgl6SUZ0&feature=related
http://www.youtube.com/watch?v=j-qQh0k4n1U&annotation_id=annotation_72164&feature=iv
http://www.youtube.com/watch?v=jB9fuIvksLw
http://www.youtube.com/watch?v=KdJZZrx_kR8


------------------------------------------------------------------------------------------
Glenn Beck:The War Room "economic 9/11" Part 1-5
(Meltdown "lite" Scenarios with former CIA/mititary analysts- what to expect in a Global Depression)
http://www.youtube.com/watch?v=E5zL5pGfNOc
http://www.youtube.com/watch?v=_DuMEmD3G5Q
http://www.youtube.com/watch?v=gGofjELJzTs
http://www.youtube.com/watch?v=ZqWhsMhTqxQ
http://www.youtube.com/watch?v=8La5xLYo2-s

 

[Submarine]

China appears very worried over this situation. Would the dollar go down the drain, so would the Chinese economy.

 

[rive0108]

China appears very worried over this situation. Would the dollar go down the drain, so would the Chinese economy.

Thats true but there is a flaw in your logic-
With the massive recalls of food and materials their economy is free-falling already (and this is partially due to the US banning their exports), selling our debt may be akin to what many companies do-unloading it for a fraction of the price to debt collection agencies, but in this case on a global scale, or like the bank stakes being purchased by Government- The US may find itself partially owned by foreign interests-or callapsing under the extreme devaluing of the Dollar.

....and it is a certainty that if the US falls so will the United Kingdom.

 

[Submarine]

Thats true but there is a flaw in your logic-
With the massive recalls of food and materials their economy is free-falling already (and this is partially due to the US banning their exports), selling our debt may be akin to what many companies do-unloading it for a fraction of the price to debt collection agencies, but in this case on a global scale, or like the bank stakes being purchased by Government- The US may find itself partially owned by foreign interests-or callapsing under the extreme devaluing of the Dollar.

....and it is a certainty that if the US falls so will the United Kingdom.

Indeed it is a very worrying situation for the US. It has been like this for years, and the US financial (and thus political) dependency of China has just been growing and growing. Nevertheless, dumping US currency, would punch a big black hole in the world economy; this would cause mass unemployment in China too, including the well educated part of the population. Cannot imagine the Chinese Gov's would want that. They will try to hibernate this out, I would think.

 

[idahjo]

Thats true but there is a flaw in your logic-
With the massive recalls of food and materials their economy is free-falling already (and this is partially due to the US banning their exports), selling our debt may be akin to what many companies do-unloading it for a fraction of the price to debt collection agencies, but in this case on a global scale, or like the bank stakes being purchased by Government- The US may find itself partially owned by foreign interests-or callapsing under the extreme devaluing of the Dollar.

....and it is a certainty that if the US falls so will the United Kingdom.

Indeed it is a very worrying situation for the US. It has been like this for years, and the US financial (and thus political) dependency of China has just been growing and growing. Nevertheless, dumping US currency, would punch a big black hole in the world economy; this would cause mass unemployment in China too, including the well educated part of the population. Cannot imagine the Chinese Gov's would want that. They will try to hibernate this out, I would think.

What is it you'all are afraid of?
Don't you have any faith in 'Barry, the Community Organizer' ?

 

[rive0108]

US dollars up to the 70's were backed by Gold, and was considered to be the World's Reserve- that has now changed, and basically the US dollar has no standard or value behind it, our deficient is so high, and we have borrowed so much, that no other Country will lend to us now (as we are unable to pay them back), so we just print more "money" and devalue the reserve futher. It has been suggested to get out of US dollars, and get out quick.

Once the US currency is no longer considered the World's Reserve it will become valueless, and effectively worthless overnight.

 

[MrNeeds]

i think that the US should consider using the old german reichsmark, it was useless but since it was devalued during the war, its basically a brand new currency. Not sure how neonazis will respond to it though.

 

[idahjo]

i think that the US should consider using the old german reichsmark, it was useless but since it was devalued during the war, its basically a brand new currency. Not sure how neonazis will respond to it though.

Speaking of useless; I am holding a stash of old Confederate $$'s in the event everything in America goes 'South'.

<...the resurrection of the Confederacy....> woops!

 

[Tarka Dal]

If China buys all the debt and then goes Bankrupt then we don't owe the debt!:D

 

[lordbob75]

I think we should just.......

Blow something up.

~Lordbob

 

[idahjo]

[MY NAME IS NOT REALLY BOB] Meant to mention earlier that "your profile .gif is cool!" :-)

 

[lordbob75]

[MY NAME IS NOT REALLY BOB] Meant to mention earlier that "your profile .gif is cool!" :-)

Is that Tuba Kirby?

My friend drew that for me when I decided to switch to Tuba for one year, and we both love Kirby.

I also just made my new sig last night, and I'm rather happy with it. I know this forum only allows two images, so I just made it all into one, and don't need to worry about it!

~Lordbob