” With a default the chinese economy will collapse along with the Russian and so on.”
That does not make sense... They have their $hit together more than we do at this point.
The Chinese economy is a house of cards. Built on corruption, lies, and printed dollars. Dollar collapses and we stop spending, their economy disappears.
China is in worse shape than us. Who do you think makes all of the stuff we are not buying.
If the bond market collapses, several trillion of our bond dollars will be dumped on the market. Price goes down, effective rate goes up.
We pay the interest and”other” obligations, the spigot for a lot of other programs stop cold turkey. Look around, we don’t want to do that.
We need to turn this ship around. Running into the rocks is not a better option.
No, they don’t. They are in the position of a) needing our into terser payments and b) needing us to be very healthy consumers of their stuff or they fold.