Replies

“We are the ones borrowing money from China to make up American budget deficits.”

I not sure where you got this information. As of July 4, this year, China is in default on a trillion dollars in debt to US bondholders. Real problem there is if the US will demand payment or start the repossession of Chinese property in the US.

https://thehill.com/opinion/international/4075341-china-is-in-default-on-a-trillion-dollars-in-debt-to-us-bondholders-will-the-us-force-repayment/#:~:text=Opinion%3EInternational-,China%20is%20in%20default%20on%20a%20trillion%20dollars%20in%20debt,Will%20the%20US%20force%20repayment%3F&text=Every%20country%20should%20pay%20its%20sovereign%20debt.

It has been the action of some presidents to just waive off a debt. The United States has forgiven debt owed by other countries, like it did with Iraq in 2004, shortly after President George W. Bush invaded the country. In late 2000, President Bill Clinton signed a law that would “forgive or alleviate” $435 million worth of debt for the world’s poorest countries.

It doesn’t make sense to continue a debt that cannot be paid back except in tiny payments that make no difference in the long run. It ended up like a stock takeover in the debts the Chinese bought out using prosperity in trade with the US.

wy69