With all those Chinese loans we’ve taken out, I’m surprised they haven’t been called in yet...
Maybe we’re ‘too big to fail’? (Crashing the dollar would hurt the Chinese as much or more).
Why would they?
It would be a double whammy for them. Those US treasury notes are worth more yuan as the dollar gets stronger and, it’s a big and, they devalued their currency relative to the dollar to make their products cheaper in dollars. If they start selling massive amounts of dollar debt and devalue the dollar it defeats their efforts to devalue their own currency. Neither does them any good.
If they sell dollars their currency (yuan) goes up. And actually they want their currency to decrease.
So if anything, the Chinese will buy more dollar denominated debt/commodities.
With all those Chinese loans we’ve taken out, I’m surprised they haven’t been called in yet..
Treasury bonds cannot be redeemed before maturity. It's a common myth that the Chinese can "call" any of the bonds they've purchased.
The chinese aren't even the biggest holders of US debt. That's another common myth. They're just the biggest foreign holders of US debt.
But they are. In 'clean coal technology' and unit trains...the same tech our power companies developed trying to hit EPA moving targets for emissions, but can't use here. (or is that just an 'interest' payment?)