America, what happens to you when (not if) China forcloses on what you owe her?

Question

Take a look at this article;
http://www.tribune-democrat.com/editorials/local_story_236133107.html
Hysterical? Not at all. Read the whole thing and think about what you have in your home that is Chinese made. Shop at Wal-Mart? Then don't ***** and complain when companies outsource.
The fact is, America's position as a maker and a builder is long gone. Now America is fat, lazy and it's sense of entitlement is nothing to be proud of.
So, what ARE you going to do about it?

That deleted word up there is B itch by the way.
(now that I think of it, how do people ask questions about female dogs if Yahoo bleeps out that word?)

Answer 1

People don't seem to understand how much of America China owns. It's like playing the options market and your ticket has been called in and it's time to pay. We talk of American pride, bullcrap, we don't even support our own workforce any longer.

Answer 2

China many years ago realized it had little to no chance of defeating us in a conventional war, and nuclear produces no winners. So, they began studying asymetrical warfare. While their ownership of our debt may not technically be part of a larger strategy to foreclose, I have no doubt China would do so it it thought it was in their interest.

Many economists say that is crazy, and China would never do that. The problem with Economists is they think everyone is a rational actor. Countries often do things that are counterproductive economically. Prior to WWI the economy was almost as global and interconnected as it is today, but that didn't stop the mass slaughter that followed.

Answer 3

There's very little that can be done about it -- the federal debt is so high that there is no reasonable way to pay it down anytime in the next couple of decades.

And in that time, several other federal funds -- including Social Security -- will be going bankrupt -- which means the federal govt is very likely to just default on the debt.

The question will be then -- what will China do about that?

Answer 4

There's an old adage that is relevant here:

When you owe the bank $100, you have to be niceto the banker.
When you owe the bank $100 million, the bank has to be niceto you.

So quit worrying about China holding so much US debt. It's a problem--but more for China thanfor us.

Answer 5

we say "female dog"