Bernanke will buy it.
I thought they already did, and that’s why the Fed started just printing money (buying the debt themselves).
Better call Saul!
Chang must have head in sand. China doesn’t buy our debt anymore. They’re worried about the debt they’ve already bought.
This would cause a drop in China’s exports of about 20% almost over night.
The Chinese economy would implode.
Then they will find a horse head in their bed. . . .
It is sad that we are reduced to this question.
We sell debt at auction to the lowest bidder. If they aren’t willing to buy at a rate low enough, then the Federal Reserve will step in and buy it.
Thus there will always be a market for our debt, until our currency is so debased as to be meaningless.
I was hoping the shutdown would stop the cheap imports coming in from China at least temporarily. And make domestic producers think twice about relying on Chinese goods instead of American goods. But apparently customs was designated as essential personnel.
We sell debt at auction to the lowest bidder. If they aren’t willing to buy at a rate low enough, then the Federal Reserve will step in and buy it.
Thus there will always be a market for our debt, until our currency is so debased as to be meaningless.
I was hoping the shutdown would stop the cheap imports coming in from China at least temporarily. And make domestic producers think twice about relying on Chinese goods instead of American goods. But apparently customs was designated as essential personnel.
Our economy would collapse, they’d be unable to ship any more crap to Walmart, a billion ChiComs would be laid off, and all ranking Party members would be swinging from lampposts within two weeks.
It’s Mutual Assured Destruction, 21st. Century style.
The Chinese stopped buying our debet and have been unloading it.
The oly buyer now is the Fed.
I’m not up to speed on this topic, but didn’t a recent bond sale go poorly, and China is no longer buying our debt? Like I said, I’m not up to speed, it’s Mrs. Liberty’s department.
China already stopped buying US debt. Right now, the Fed is dumping $85 billion per month into the US Treasury. Over the last 12 months, that amount actually exceeds the revenue shortfall for current spending levels. We did not have to borrow a single dime over the past year, which is why interest rates remain so low.
The Chinese have to buy it. They run a surplus with us, the surplus being US dollars. Therefore those dollars have to come back to the US in some form since they are worthless in China. The Chinese can take those dollars to buy US real estate, products, services, companies or debt.
They would need another place to put it.
What if?? They’ve been selling more US treasuries than they’ve been buying since 2011. Japan is or soon will be the largest holder of US debt, yet the sky hasn’t come tumbling down yet. Once China un-pegged it’s currency there was no reason for them to keep on the path they’d been on, and Chinese leaders have criticized US spending patterns for a long time. Like most theories about the US economy, the idea that the U.S. is reliant on China to buy its debt and that hell will break loose when it stops is greatly exaggerated.
We got their crappy products and they got our crappy dollars. Who won?