Have we set ourselves up for another depression because of the weakened US dollar?
This is what very possibly could happen!
http://www.chinalyst.net/node/9207
Anyone not already independently wealthy should be concerned!
2007-05-29 06:16:08 · 15 answers · asked by Anonymous in Politics & Government ➔ Politics
This may be so, but global economics is very intricate and the relationships among nations quite complicated. It may not be as simple as just yanking the IOUs from the US. There are grave global repercussions if, and when, this should happen. However, you are correct: there is great cause for concern and this should not be ignored.
2007-05-29 06:25:36 · answer #1 · answered by JADE 6 · 0⤊ 0⤋
China is continuously cashing in US Treasury Bonds that they own. Treasury Bonds have yield dates. finding on the particular variety of treasury bond. Their adulthood dates could be from 2 years to 30 years. whilst China or the different u . s . could desire to income all thier bonds on an identical time, Thier fee could be alot below the face fee, in the event that they did not enable the bond to realize adulthood. IE: For a 30 twelve months bond to be properly worth face fee, they could desire to hold that bond for 30 years., in the event that they money it in early, it may desire to be properly worth as low as fifty 5% of the face fee. yet another element, opposite to known opinion, China isn't the main excellent purchaser human beings treasuries. Britian is, Britian has offered 5 circumstances greater US treasuries these days than China has. presently China holds approximately 321 billion in US Treasuries. Alot below maximum folk think of.
2016-10-30 02:33:19 · answer #2 · answered by ? 4 · 0⤊ 0⤋
we have more foreign debt under Bush than the entire history of this country combined. Yet Heather wants to blame Clinton. How do we reach people like that??? There are lots of them.
2007-05-29 06:33:25 · answer #3 · answered by truth seeker 7 · 1⤊ 0⤋
Nothing. China won't try to collect the "debt"... because their entire economy is based on the premise that we owe them money. If we default their economy sinks further and faster than ours.
2007-05-29 06:19:42 · answer #4 · answered by Jester 3 · 2⤊ 0⤋
Ask Clinton for getting us into the mess to begin with and Europe will take us down first financially. We aren't even in a recession so why worry at this point?
2007-05-29 06:22:52 · answer #5 · answered by Anonymous · 0⤊ 1⤋
I'm not. A collapse of the US economy would affect the whole world, not just us.
Remember, we're a world wide economy.
Possible, yes. likely. No.
2007-05-29 06:20:14 · answer #6 · answered by Barry auh2o 7 · 2⤊ 0⤋
We will just print up some more worthless federal reserve notes. Then you will see some real inflation.
We need to go back to a gold backed dollar.
ءراقيسكْس
2007-05-29 06:20:35 · answer #7 · answered by iraqisax 6 · 1⤊ 1⤋
We'll pay 'em off w/devalued dollars. Not too complicated and I wouldn't worry too much about it.
2007-05-29 06:19:10 · answer #8 · answered by Anonymous · 1⤊ 0⤋
The U.S. will tell China...get bent. There are thousands of U.S. companies that do business with Chinese companies,and if China trys to strongarm the U.S. government those Chinese business's will lose business with the U.S. companies they deal with which would cripple the Chinese Government,and economy....the end.
2007-05-29 06:21:31 · answer #9 · answered by Anonymous · 1⤊ 2⤋
based on all the money we have loaned to other countries and their refusal to pay i guess they'll just have to forgive it and keep on exporting their goods to us.
we are not a small market for all their crap.
2007-05-29 06:21:20 · answer #10 · answered by Anonymous · 1⤊ 0⤋