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I get the blood for oil thing (and believe it myself), so are you suggesting that China is absolving us of our debt obligations to them because we let them have Iraqi oil as a kind of under the table thing? that would be cool, but sounds a little far-fetched to me. You can bet China is expecting us to pay back the debt, which we will eventually over an extremely long and drawn out time. And our debt is all fixed income treasuries, so China already knows what the return on investment will be and it's not much!
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