Uh Oh: China Doesn't Want To Lend Us Money Anymore

[Cold Highway]

This is critical question, because resistance on the part of creditors will drive up interest rates, clobbering the housing market and demolishing the value of whatever cash savings Americans have left. The other answer--our government lending the money
to itself--will destroy the value of the dollar, and that wouldn't help too many people, either (except debtors--it would help debtors because they will be able to repay nominal debts with toilet-paper dollars.

You see its basic banking principal, if you know the person your loaning to can't pay back the money you have already lent to them, you stop lending. Forget about the United Socialist States of America, I say we will become the United Peoples Republic of America.

Uh Oh: China Doesn't Want To Lend Us Money Anymore

 

[Baralis]

It could actually be in the US governments best interest (not ours) to self loan and print and cause mass inflation of the US dollar. By doing so it actually makes the repayment owed creditors substantially lower in value then the original contract.

 

[Cold Highway]

It could actually be in the US governments best interest (not ours) to self loan and print and cause mass inflation of the US dollar. By doing so it actually makes the repayment owed creditors substantially lower in value then the original contract.

I've heard of this scenario and your right, it wont be in our best interest to do that because if China sees that the US dollar is worthless they will just buy up land and take our resources.

 

[PeteEU]

I've heard of this scenario and your right, it wont be in our best interest to do that because if China sees that the US dollar is worthless they will just buy up land and take our resources.

Are they not already doing that?

 

[Don't Tase Me Bro]

You see its basic banking principal, if you know the person your loaning to can't pay back the money you have already lent to them, you stop lending. Forget about the United Socialist States of America, I say we will become the United Peoples Republic of America.

Uh Oh: China Doesn't Want To Lend Us Money Anymore

Good! I hope they don't. Maybe it's time this country felt the pain of its actions.

 

[dirtpoorchris]

It could actually be in the US governments best interest (not ours) to self loan and print and cause mass inflation of the US dollar. By doing so it actually makes the repayment owed creditors substantially lower in value then the original contract.

Making cool-aid.

I make a big ass batch of cool-aid. Extra sweet. Extra good. I then pour 30% of its content into my personal container. I then pour half of what is left into an empty milk jug and the other half into a different jug. Fill with water. Serve watery cool-aid to everyone else. *sit back and sip on some bomb ass cool-aid.

 

[LaMidRighter]

It could actually be in the US governments best interest (not ours) to self loan and print and cause mass inflation of the US dollar. By doing so it actually makes the repayment owed creditors substantially lower in value then the original contract.

I'd go further and say that inflation could be good for the overall mindset of America in that people might actually wake up and start demanding spending accountability from politicians when their buying power starts to be affected, of course, that is speculation on my part.

 

[obvious Child]

I've heard of this scenario and your right, it wont be in our best interest to do that because if China sees that the US dollar is worthless they will just buy up land and take our resources.

Unlikely. To actually do that, we'd need to quickly ramp up printing, and there's no way we could beat them to the punch. They'd instantly place their $600 or so billion US debt notes on the market. There's no way to inflate fast enough to dampen that kind of impact on the dollar.

 

[American]

Unlikely. To actually do that, we'd need to quickly ramp up printing, and there's no way we could beat them to the punch. They'd instantly place their $600 or so billion US debt notes on the market. There's no way to inflate fast enough to dampen that kind of impact on the dollar.

Somebody would have to buy those notes. Who has the money?

 

[dragondad]

I you owe me $300 I control you.

I you owe me $3 Trilliion, you control me.



The FACT OF THE MATTER is China is joined at the hip with the USA and cannot stop lending us money unless they want to see their investment wiped out.


This thread is just another scary tale passed on by the right wing 99% of whom have no knowledge of how finance works.

 

[stekim]

Not to get all factual, but there was a bond auction TUESDAY. The Chinese bought.

 

[Shadow Serious]

Not to get all factual, but there was a bond auction TUESDAY. The Chinese bought.

Oh well. one can hope for the next time.