2007-12-17 07:02:15 · 7 answers · asked by Think Richly™ 5 in Politics & Government ➔ Other - Politics & Government
We've been borrowing so much money from China, I'm wondering how long it will take to pay off that debt.
2007-12-17 07:03:39 · update #1
According to Ron Paul, a member of the house banking committee, we owe China about 2 & 1/2 trillion American dollars.
China gets American dollars when they sell us stuff made in China. Instead of sitting on the dollars they buy American interest bearing Treasury Bills & Treasury Bonds, which would have different maturity dates. These Gvt. issues can also be rolled over when the maturity date arrives.
It's a distinct possibility that it may never be paid off or paid back because the numbers are so high.
These American dollar debt obligations can be sold or traded by China at any time provided a buyer is found.
If the Fed is ordered by Congress to buy them back, it would probably be at a very deeply discounted price, which would show the worlds bankers exactly how unsound dollars have become.
If the Fed buys huge amounts of Treasury debt, it can be assumed the national debt {about 9 trillion dollars} would be owed to the Fed, which apparently is owned by the wealthiest bankers in the world, not the American people.
Now do you see why Ron Paul wants to abolish the Fed?
Thanks for the question.
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2007-12-17 07:27:21 · answer #1 · answered by beesting 6 · 10⤊ 1⤋
Some things to consider.
1. America has run a national debt for most of it's history. The secret is that this debt never has to actually be repaid, merely rolled over, as has always been done.
2. The interest and the debt is primarily paid by the rich, since they are the ones paying almost all the taxes.
In other words, don't sweat it.
2007-12-17 07:54:27 · answer #2 · answered by Uncle Pennybags 7 · 4⤊ 14⤋
trillions with a T.
2007-12-17 08:25:53 · answer #3 · answered by Anonymous · 11⤊ 3⤋
we owe them enough to ensure we all die from lead painted toys!!
2007-12-17 07:10:28 · answer #4 · answered by Ben S 3 · 8⤊ 7⤋
More than what's in your bank account and longer than you think.
2007-12-17 07:08:46 · answer #5 · answered by Anonymous · 6⤊ 9⤋
I don't know - why do we have to repay debts to other nations but nations who owe us money don't.
2007-12-17 07:10:03 · answer #6 · answered by Anonymous · 2⤊ 17⤋
It doesn't matter, we control their economy just like they control ours. Plus we can sell them our LAtin American debt in exchange.
2007-12-17 07:08:05 · answer #7 · answered by Anonymous · 2⤊ 19⤋