Once again the child who can't even complete an associate's degree exposes his ignorance of international monetary theory.The national debt is now more than 100% GDP. Now, TT would have you believe this is a good economic plan (asinine). What it really is, is being OWNED. If China were to demand repayment, we couldn't do it. From there it would snowball and others would demand their money as well.
PLEASE explain how China can demand repayment when ONLY the United States can call the bonds. China's only recourse is to sell them on the open market to some other sucker such as yourself or rube ("mr. goldbug sucker").
OBAMA’S BIGGEST FINANCIAL SCAM
In order to give hard-working American families less expensive clothes and other non-food items, Wal-Mart buys consumer goods from China at very, very low prices, and pays for the purchases with good ol’ American dollars – the preferred currency among international traders around the world. Because of the very low prices, American consumers are BETTER OFF than before (with respect to the purchase of these goods).
Thus, China has excess U.S. dollars on hand and nothing to do with them.
So we make this deal with them: you give us back our dollars (in denominations of $TRILLIONS of dollars in return for little pieces of paper that say “IOU” for the same $Trillions of dollars with a balloon payment in thirty years and not one day before.
You might think China is too smart to fall for this SCAM but they do.
They simply ask that we pay them interest at the fixed rate of 2.54% per annum for thirty years. IF we do decide to pay the principal sum back in 2042, it will be with highly inflated dollars. Thus, OUR inflation will cause the loss of $billions of dollars to China.(Remember it’s a zero-sum game.) Pretty slick, huh?
This means that our new found cash cow (China) provides the United States with virtually unlimited borrowing power.
Now you probably think BORROWING is BAD, but watch this:
By spending more money than the federal government takes in by taxation and other revenue sources (creating a deficit of, say,$1 TRILLION a year or more) to buy votes through entitlement programs that are paid for with the dollars borrowed from China (not the U.S. taxpayers), the administration is able to have its cake and eat it also by (honestly) telling the American public that taxpayer money is NOT being used to fund entitlement programs to buy votes – all the money to pay for vote buying (welfare, food stamps, public housing, etc.) is being borrowed from our political enemies in China.
And if we decide to stiff them? What are they going to do? Sue us? Ha Ha Ha – LAUGHS ON THEM.