2007-03-22 18:01:42 · 9 answers · asked by professional student 4 in Politics & Government ➔ Politics
Big trouble! China now own so much US debt that if they called it in it would bankrupt the US and wipe out our economy.
2007-03-22 18:05:12 · answer #1 · answered by kwilfort 7 · 4⤊ 1⤋
China owns about 346 billion in US treasuries.
Contrary to popular opinion, China can not just cash them all in, anytime they want to.
The US has 3 main types of treasuries:
Treasury bills (or T-bills), which mature in one year or less.
Treasury notes (or T-Notes) which mature in two to ten years.
Treasury bonds (T-Bonds) which mature from ten years to thirty years.
About 50% of the public hel US debt is in Treasury notes , with the rest in Treasury bonds and Treasury bills.
Since each treasury has a different maturity date, they can now all be cashed in at the same time.
Countries are constantly cashing in mature treasuries and buying new treasuries.
The US ranks 35th in the world, when you compare US Debt to GNP.
2007-03-23 01:34:55 · answer #2 · answered by jeeper_peeper321 7 · 1⤊ 0⤋
It depends. Having a foreign nation own a huge chunk of your national debt is a problem, but at the same time it serves a crucial bond between us. If China were to one day declare war on us, our debt to them would vanish instantly. At the same time they can't recall all of it at the same time since it would cause American currency to rapidly fall in value sinking their economy (they're almost all based on exports) and making the actual worth they have alot less. I personally am against us continually deficit spending but its not a major problem. Yet.
2007-03-23 01:51:28 · answer #3 · answered by Doctor Slernon 3 · 1⤊ 0⤋
No need to worry. China only ones a small amount of U.S. debt when compared to the U.S.'s GDP. Just like experts say, there is nothing to worry about.
Also, it is not $1 trillion. The amount is far less.
2007-03-23 01:07:15 · answer #4 · answered by a bush family member 7 · 1⤊ 0⤋
Mark my words: China is a bigger threat to the US than all of the ME and everywhere else put together!!
2007-03-23 01:18:45 · answer #5 · answered by Joey's Back 6 · 2⤊ 0⤋
if true,
according to this website, it means China should probably pay off THEIR external debt.....
or, at the very least, give their 'laborers' a raise.
http://www.aneki.com/debt.html
2007-03-23 01:26:36 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Yes, that's why New Orleans is still in ruins
2007-03-23 02:38:05 · answer #7 · answered by brainstorm 7 · 0⤊ 0⤋
Oh Hell YES. don't get me started.
2007-03-23 01:05:27 · answer #8 · answered by Anonymous · 4⤊ 1⤋
No.
2007-03-23 01:16:07 · answer #9 · answered by Anonymous · 1⤊ 0⤋