...China calls in US Debt. President Palin selectively defaults all chinese-held US bonds and imposes high tariff's on chinese produced goods. Chinese economy crashes. Chinese peasantry revolts. The Peoples Liberation Army doesn't get paid in anything but monopoly money. They refuse to cross the straits, Chinese Taiwan laughs and laughs and laughs.
Well maybe it won't work out exactly that way, but we have lots of cards and we hold the whip hand.
The question, as always, is one of will.
That’s the other side of the debt coin. While we make ourselves vulnerable to China by borrowing money from them, China continues to make itself even more vulnerable to us by depending on US consumers to purchase their manufacturing output. China would be foolish to do anything to sabotage that relationship, as no other country can purchase their exports the way we can.
I agree but default is the wrong word IMO. That's like saying the crime victim failed to pay the thief.
IMO here is the proper business approach.
United States Free Enterprise, INC.
INVOICE
Capital, Goods and Services stolen and extorted by the Peoples Republic of China
FDI, Intellectual Property, technology, know how . . . . . . . . . . . . . . .$ 2,500,000,000,000.00
Payments received from the Peoples Republic of China . . . . . . . . . . .$ 1,000,000,000,000.00
Amount due . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 1,500,000,000,000.00
Your Treasury certificates are your payment receipts. Thank you. [End of invoice]
Yes, the U.S. dollar may suffer but Red China will have a revolution with about 100 million more unemployed citizens joining the tens of millions already giving the Communist Party headaches.