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Here’s the paragraph you left out:

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That would make it easier to pay back Japan, for example.

I am not arguing that we should do this. What I am saying is that China does not have power over us. We are the client threatening the bank (China) with a default that would bring profound social disorder to them. After all, these excess funds were created by China via the exploitation and low wages of Chinese workers. How would the Communists face their comrades with news that America has defaulted and years of their labor were in essence transferred —along with their money— to rich Americans?

US Treasury bonds: Made in America, and in control of China.
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Now there’s no reason for anyone to click over to a blog to read the whole content.

Isn’t that great?

Here’s the paragraph you left out:

What you are talking about, is restructuring a debt. Much the same way the US government restructured GM's debt, by paying bond holder's 10 cent on the dollar.

While China owns a large chuck of the of America's $8 trillion debt, she doesn't own all of it. In fact, American's own most of it. About 3 ouf of the 8 is owned by foreiners. The other 4 or 5 trillion is owed to other government agencies, e.g., social security (sort of like robbing Peter to pay Paul). Please don't quote me on the exact numbers, but ballpark.

Anyway, a restructuring would not typically target Chinese holdings first, but all holding, including the ones held by your grand father.

And prior to restructuring, the US would try all means first before defaulting. And that would include all measure to get the economy moving again to continue to generate higher tax revenues. And one method, to create jobs, which have been unpopular, is to allow the Chinese, to use their new found wealth, to invest in US businesses, and even expand their own onto US soil. And, this idea is gaining momentum as America continues to struggle with unemployment.

In the coming decades, China will actually deepen her debt holdings in the US, but it may not be in the form of federal bonds. But instead, in the form of numerous deeds to local factories through out America ;) Mom, apple pie, and Norman Rockwell may have Chinese characters on them ;)