I read that China owns a big chunk of US' debt. What happens to that debt if US and China go to war, say over

Question

Taiwan? Is the US still liable for that, say after defeating China?

Answer 1

China is a creditor because they have purchased bonds which carry an implicit contract. All contracts are negotiable. In the event we won a war against China, we could propose to modify our debt contracts as terms of the peace.

Answer 2

i'm not exactly sure but i heard that the only country that could beat the U.S. would be china because we rely so much on the for goods, etc that if they were to sever those ties our country would be so out of products we would wither and die. and then china could defeat us. kind of a scary thought hunh?? I agree with victor because some people believe that the U.S. is the one who caused 9-11 that the government are the ones who crashed the planes into the towers etc. if the us goes to war (or causes war and blames it on terriorists) then debt is ignored. Makes you think dont it??

Answer 3

Yes the US would still be responsible for it's debt. But the US is not foolish enough to pick a war with China. China has the worldest largest standing army. In case you haven't read your labels recently everything in the US has MADE in CHINA.

You don't bite the hand that feeds!

Answer 4

The U.S. won't go to war with China because it would lose.Face it,1.3 billion in China and 300 million in the U.S.They both have the same number of nukes,so simply by numbers China would outlast the U.S. George Dubya is scared to death of China,thats why he tried to elliminate the population by introducing the virus SARS into China but China and the rest of the world stopped the spread of SARS and burst George's bubble.China would kick your *** in any kind of a fight and the Fuhrer George knows it.

Answer 5

International law would say yes, we would still be liable. Suppose you borrow money from a friend. You two get into a fight over something, and you beat them up. Now even though theres no way this person can make you pay them, there are others around you that know you borrowed money from them. They will either try to get you to repay your debt to them, or they will be reluctant to lend you money in the future. Probably both.

Answer 6

however the biggest reason china purchase US bonds that are at almost 0 activity, is that there is a actuality that usa will pay off. they could wager 20-50% activity fee on Greek bonds yet there is almost no risk it is going to ever be paid. IF and provided that, american congress is so stupid as to fail to strengthen the debt decrease could be we quickly no longer able to pay. they could wreck our credit status interior the international and throw US and the international into yet another super melancholy. to days paper suggested that as a fragment of our national financial equipment our debt is below germany, it extremely is the super financial powerhouse of europe..Greece on the different hand owes extra desirable than one hundred fifty% of its GDP and could make radical and painful differences. Germany and different Euro international places will "bail them out" extremely than enable the entire Euro forex crumple. Chia happens to have extra $ than it could use by way of all of the cheap junk we purchase from them. What else will they do with that funds? and that they can't repossess the Grand Canyon! the Cons are doing usa a brilliant disservice via harping on the Debt by way of fact the vast situation. what we want is financial growth

Answer 7

War tends to cancel debt until a victor emerges. In a war between the U.S. and China, there will be no victors.

Answer 8

In the event of war, all debt is canceled. Maybe you have hit on the strategy!