[RegulatorCountry]

"We could default and get to keep all the foreign goodies!"

I'm not following you here. China is certainly not going to come and repossess all the cheap plastic crap we've bought at Wal-Mart, lol.

[ARCADIA]

China is certainly not going to come and repossess all the cheap plastic crap we've bought at Wal-Mart, lol.

They will just nationalize the US "owned" factories that some idiots were stupid enough to build there.

[economist-student]

One out of every four mortgages in the US is owned by a foreign entity. The same applies to the current account deficit. The Chinese central bank buys treasuries with recycled dollars and it finances US government spending (and to a lesser extent private consumption and investment)