[Toddsterpatriot]

That deficit returns to haunt us as China purchases our government debt obligations. In the long haul, America will have squandered its wealth and will be obliged to pay taxes simply to pay interest on the debt owed to China, and in turn, receive less government services for the tax dollars we pay.

This situtation is NOT in America's best interests.

OK, what do the Chinese do with our money? It doesn't do them any good if they just collect the interest and sit on it.

Money is only good for what you can buy with it.

If they do buy things with it, it creates jobs here, doesn't it?

[Willie Green]

OK, what do the Chinese do with our money? It doesn't do them any good if they just collect the interest and sit on it.

My guess is they'll turn around and reinvest it in even more T-bills.
That way they'll collect even more interest from our taxes.

At some point, it's possible that we could default on our debt.
In that situation, it's conceivable that they'd demand seizure of some of our assets.
We purchased Alaska from Russia long ago.
Considering the oil and geographical proximity of Alaska, perhaps that's what they'd want in payment of our debt.
We might even be forced to toss in Hawaii.