[epluribus_2]

when you owe the bank a million you have a problem, when you owe the bank a billion, the bank has a problem.

[kabar]

Yeah, right. This silly notion that the US, the world's biggest debtor nation, has the advantage over China because we owe them so much money is pure nonsense. It is far better to be the banker than the debtor.

The US is almost $16 trillion in debt. Our debt servicing costs are now abour $300 billion annually. Once interest rates increase to more normal levels, we will be incurring almost trillion dollar a year interest payments. In fact, our interest payments to the PRC will be enough to fund their military.

In the meantime, China will be using our debt to influence our behavior in much the same way we used to do when we were the world's largest creditor. The Fed already buys 61% of our issuance of treasuries to fund the 42 cents of every federal dollar spent. We are the ones with the problem, not the Chinese.