What actions does China need to take to collect the borrowed money that we've taken?

Question

How does this process work?

If we choose not to pay, then who will police us to make the US government pay?

Answer 1

well, they ain't taken dip! Its the American consumer that is in debt not just Uncle Sam......and if they chose to dump that one trillion US dollars on the open market........there wouldn't be a snowball chance in he!! you would be eating a rid-eye streak tonight.
funny...more value in a persons mouth(gold cap) than their pocket!

8.6 trillion is the US national debt borrowed by the general fund the highest ever in history.
The US dollar keep declining it's time to start recognizing the early warning signs of a gathering storm regarding the strength and the stability of the United States. Spending programs such as war and civil servants, health, education, welfare, urban renewal, and the like, should come from taxing at first the wealth and income. But instead, the Government adopted the philosophy of cutting taxes to boost economic growth. It does not work!
The National Debt: Printed by the US Mint.
1910 2.6 (billions)
1920 25.9
1930 16.2
1940 43.0
1950 257.4
1960 290.2
1970 389.2
1980 930.2
1990 3,233.3
2000 5,674.2
2005 7,932.7
2006 8,506.9 (trillion)
Income taxes were/are cut, and has not create more money for the economy to grow, instead the US Mint has to print more and more money, which gives it to the Fed Reserve, which gives it to the White House, to pay for the countries programs (and whatever). And the process is repeated, over and over again. The more money gets printed, the more money goes in circulation, which chase the same items. It is that creation of money that visibly raises goods prices and lowers the purchasing power of money. Inflation is defined here as the creation of new money by monetary authorities, i.e, the US Mint.
More credit was needed by regular Americans to make the necessary purchases.
Consumer debt increased by $434 billion, from $839 billion in 1993 to $1,273 billion in 1996.
1996 - 1.2738 trillion
1997 - $1.3449
1998 - $1.4421
1999 - $1.5563
2000 - $1.7358
2001 - $1.8690
2002 - $1.9527
2003 - $2.0344
2004 - $2.1206
2005 - $2.1780
2006 Qtr 1 - $2.1900 trillion
House Mortgages - Outstanding

Foreigners own over $8.2 trillion of assets in the USA. Equities on the US stock market are at historically high PE ratios, some 3 times above the norm and twice the level of PE ratios on foreign stock markets. Real estate looks as it has peaked. Especially with arise in interest rates in prospect? Here's where the "point of recognition" becomes important.
Foreigners will, firstly, consider how far the dollar will depreciate against their home currency over the next 12 months. Could it be a 5%, 10%, 15%, drop? Then the question is: "Can USA assets rise by 15% to compensate for the currency loss and leave the investor in a level, no win, no loss situation?" The answer seems to be a clear "No".
Foreigners/Americans with large sums of money at risk are quietly taking profits out of the US market, US unbacked dollars is being used to bolster the market indices so the average investor (US and foreign alike) are kept blind to what is about to hit them.
This disaster-to-come has been created artificially by (a) politicians' selfish desires to portray a financially healthy US economy for the advancement of their own political careers, (b) to benefit small, united groups of unscrupulous, rich, and over-speculative investors that make significant (and often wrong) investment decisions but also make significant campaign contributions, (c) refusing to warn the populous regarding the outcome of consistently over printing US unbacked dollars.
Inflation, has become your new tax. See here below, and know if the tax cuts benefited you.
The top 1% of households own almost 40% of the nation's wealth.
The top 4% of Americans own 60% of the nation's wealth.
The top 10% of Americans own over 70% of nation's wealth.
The top 20% of the nation's households own 85% of the nation's total wealth.
The bottom 40% of households own one-fifth of 1% (or 0.2%) of the nation's wealth.
The bottom 60% of Americans own only 5% of the nation's wealth.
The bottom 80% of Americans own only 15% of the nation's wealth.
The total wealth in America totals $27 trillion dollars.
America is addicted to "cheap"

According to the Bureau of Labor Statistics.....

saving rate
1965 8.5%
1975 10.5%
1985 11%
1995 5%
2005 -0.4%

the savings rate in January 06 was a negative 0.7%...

that is, the average!

American household spent 0.7% more than it made.






Now.......... the kicker!
the gross domestic product is attributable to consumer spending?





A whopping 70% ...

Now we have the "catch 22"..........

If the American people start to save......

say 10% of their income.....


thats gonna be 10% less the consumer is gonna buy .....

which means Companies sell less...............






"UNLESS".... Wages go up!.......
but with the all time high in Corporate profits in the past few years and a good part going to CEO's and insiders.....
a 10% increase ain't gonna happen soon!




SO!.........retirement is out of the picture if the American people don't save they have to keep working!


NOW........the flip side!




we can thank Microsoft, Warren Buffet, General Motors, General Electric, Motorola, Wal-Mart, Target and Ford for pouring billions of dollars into China......................


China saves 50% of their income!

In search of better wages and a better life,300 million Chinese peasants will move to the cities in the next 15 years. This means China must build a new city the size of Philadelphia every 30 days. China is now constructing the most advanced rapid transit system in the World.

Each year for the next 20 years, China will consume as much structural steel as would be needed to construct every building in Manhattan.

According to Professor Jeremy Siegel of the Wharton School of Business, "In the not too distant future, the economy of China will be nearly twice as large as that of the US, an equal to the combined economies of all of North America, Europe and Japan".

Already China is the world's largest maker of toys,clothing and consumer electronics and is swiftly moving up the ladder in car production, computer manfacturing, biotechnology and telecommunications,thanks to low-cost workers and high-tech factories.

Author Ted C. Fishman writes in China, Inc., "The Country is closing in on a 30-year run during which its economy has doubled nearly three times over. The surge has no equal in modern history. Neither Japan's nor South Korea's postwar booms come anywhere close."

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and they say..........this growth trend is unstoppable!
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In 1776 a few fat farmers got together and with the penmanship of a poet wrote down on a piece of paper....







the American dream!






Now..............young people in America..........



think $10 an hour....a ipod, computer games and flipping burgers is...................

that American dream!

Answer 2

No actions are required. Such debts are typically in the form of bonds, and are not redeamable on demand. Instead, the holder recieves interest payments, and redeems the principle at maturity.

Defaulting on bonds is a very bad thing, it ruins your ability to issue more bonds, later, typically increasing the interest rate you pay drastically, so governments, in particular, try very hard to avoid defaulting on thier bonds.

Answer 3

China turns us over to a collection bureau. If we don't pay, the Swedish Army will invade the U.S. and make up pay.

What do you think will happen?

Answer 4

Is this a part of Greenspan's prediction of the collapse of China's stock boom?