Please explain to an economics/foreign policy retard why China owning a huge portion of US debt would prevent the US...

Please explain to an economics/foreign policy retard why China owning a huge portion of US debt would prevent the US from implementing sanctions on them due to the North Korea stuff.

They're our largest individual trading partner. We can't just sanction them or it'll hurt more Americans than anyone else.

if they cash in all our treasuries at once it would cause massive inflation

Ok. But how does it hurt the US more than China?

Prices for goods is so low here because of free trade with China. If we can't trade freely with China, we'd have to jack up the prices to pay for it through means wouldn't have to do otherwise.

And they definitely have an unqualified right to do that at any time?

What do you think would happen if china said "fline fluck ru Amelica juh pay us the 1.3 trillion you owe us!

What happens when china simply places an embargo? In that event America looses a vast majority of it's imports.

Pic related

china (and russia) hold billions if not a trillion in american treasuries, treasuries are essentially IOU's that pay interest. if they cashed them all in at once the US would have to print money to pay them, ALOT of money. all the money we print would flood the market with US dollars making the value of a dollar decrease. the decrease in value would cause world markets to implode and prices of things denominated in dollars to sky rocket. The theory is that China and russia would do it together and then move to establish a new global currency. But its all bullshit, America is the backbone of the worlds finicial structure doing it would crush them just as much as us, not to mention they would lose a shit ton of money because the dollars we pay them for the treasury securities would be devalued so much. Them cashing all TS in at once is like them holding a grenade in a crowd and saying dont fuck with me or ill kill us all, its a bluff.

I think its important to mention that the individuals who let them acquire this much american debt should be hung on public television for treason and their deaths celebrated.

>The National Defense Authorization Act of the fiscal year 2012 included a provision requiring the Secretary of Defense to conduct a "national security risk assessment of U.S. federal debt held by China." The Department issued its report in July 2012, stating that "attempting to use U.S. Treasury securities as a coercive tool would have limited effect and likely would do more harm to China than to the United States. As the threat is not credible and the effect would be limited even if carried out, it does not offer China deterrence options, whether in the diplomatic, military, or economic realms, and this would remain true both in peacetime and in scenarios of crisis or war."

the TS usually have aturity dates, 5 10 20 years. whne they mature the money is usually reinvested in more securities. they its compounding intrest eventually its going to implode.

The giant clock that counts the US national debt...the people holding the TS are who the debt is owed too. Essentially the world bought the US government through our own economic policy.

so they could use it against us, but thats like burning your apartment down just to ruin your neighbors, they have an interest in not doing so.

This makes sense. Thanks man.

Oops

>then mexico would pick up the slack with help from american investors

>china down the line would be counter embargoed once supply is at a bare minimum replacement by every other country besides BRICS,

>illegals would most likely stay in mexico because of the job opportunities

Not Russia

Saudis and china

Russia dumped all Rothchild debt it's why Hillary was trying to start war with Putin same reason the British wouldn't accept the two peace treaties offered by the nazis

Pic related

It isn't, but the trade relationship is important because the USA, and China are very interconnected. All US debt is dollar denominated in bonds so the USA has everyone pretty cucked in that sense.

This would hurt China very badly also since they use our dollars as foreign reserves, and inflation hurts the lender.

I don't believe they can even cash in the bonds like that, but they can start selling them. Bond investors would be very weary after seeing China sell US bonds at large numbers

>implying it'd hurt the us more then China
China would collapse if we stopped trading with them. Don't fool yourself

Other way round America has outsourced so long that it's losing to china

Just look at the amount of debt America has also America doesn't own the bank that it borrows money from so you guys kinda only have world war three as an option

Gun running
Drug production
And human trafficking are americas only real source of income

Isn't Canada our largest trade partner?

...

There is a saying that if you owe a bank a million dollars, you have a problem. If you owe a bank a billion dollars, the bank has a problem.

I mean in the sense that a lot of these nations use US securities for a large portion of their foreign exchange reserves to protect them from speculative attacks, and heavy volatility. The USD is still the global reserve currency by a large margin, and the safest assets to own. They would have difficulty in choosing what else to keep their reserves in so they do not want the USD to weaken. This is why when the US prints more, these nations are nearly forced to buy more to strengthen the USD

China only owns like a trillion dollars and japan owns a similar amount. Most of are debt is publicly owned which is why we don't pay it back.

simple, we would type those numbers into the fed balance sheet and send them the corresponding 1's and 0's that represent the inflated garbage dollars.

So at this point is there even a realistic scenario in which these countries cash out these treasuries over time I wonder?

They could but they would take a loss on not letting them mature plus the value would shrink as they unload. China would be shooting themselves if they did this.

If we went to war with Korea, and by proxy China, people would still buy treasuries due to their safety.

What are you, retarded? WE PAY CHINA FOR GOODS, but guess what? If we stopped, they wouldn't have an economy and we would pay a little more for small unimportant shit.

China plans to overtake Western technology goods by 2025. China can produce goods cheaper than the other countries