SpokenTruth said:
outlawauron said:
That's not how it works. The US didn't give China an IOU and a wink. Much like several other countries, China has begun to sell some of their bonds. Usually done for stimulus and the prop up their currency. Demand is still there for treasury bonds because they're the most stable investment in the world.
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True, but how much of that $1.2 trillion (it was $1.3 trillion last year so they've cashed in some as you noted) has matured? How much could they potentially call in at once? Better stated, how much would we need to borrow to cover? Further stated, we're basically at a point where we'd have to rob Peter to pay Paul if China were to cash in.
You and I both know China won't because harm to us is harm to them but my comment was more in reference to just how much damage 10% would really do....if they could call it all in at once (I really am curious what the maturaity rates and percentages are for the T-bills they have).
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We don't know that information, but I'd be shocked if they'd be able to claim them all at once. That would defy logic on both sides.
To humor the thought, the US would suffer a setback, but it wouldn't cripple the country.
