I think Japan is our #1 creditor, and China is #2. When it comes to defaulting on debt, who is hurt more, the debtor or the creditor? Seems to me the Chinese are on the hook in a big way.
Yes, Japan is taking on more of our debt because China sees our DECLINE. The Chinese aren't really on the “hook”. It is the U.S. that is on the “hook” n a HUGE way. Our country is bankrupt and we can't print enough money to cover our debt.
China is backing off buying our debt. China KNOWS we are heading in the wrong direction. Yes, believe it or not, China is more capitalistic than the U.S.. The U.S. is becoming a poor country that is taxed to death and oddly enough, some people on this thread want MORE taxes because China is more competitive. The punish the successful is now being applied to China - go figure! It makes one wonder if they don't secretly relate to Obama and his economic policies of punish the achievers ... .
The answer is LOWERING our TAXES - especially on businesses so that the U.S. may regain our competitive position in the world instead of taxing us down the drain.
It’s economic “Mutually Assured Destruction.”