Quote:
Originally Posted by FishermanTim
Ye, and when they start calling all their debts to cover mounting losses, who do you think they will be coming after?????
Kind of like saying the money the US borrowed was "payable on demand" and they may be "demanding" payment soon!!!
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What China has is long term bonds of ours, they can't call that on demand, thank God.
But it also means they can't buy as many of our bonds going forward, which means the demand of our bonds goes down, which means the price of our bonds goes down, which means the interest rate on those bonds goes up...all of which means, it is about to become harder for us to borrow money.