What would happen if China called in the debt?

Discussion in 'Political Opinions & Beliefs' started by Daggdag, Jun 22, 2012.

  1. Jarlaxle

    Jarlaxle Banned

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    They have an army with no way to move it. What will they do...walk across the Pacific?!
     
  2. reallybigjohnson

    reallybigjohnson Banned

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    China makes too much money on the interest to want to call in the debt. They would only do it out of some dire emergency like some massive nationwide plague or natural disaster, or the Canadians invade.

    I kind of almost want to see it happen and send this country reeling for a few years if for no other reason that to be a wake up call to Americans and their political leaders why this much spending and borrowing is BAD.

    In regards to a military conflict China is no where near the US in military capacity. Having alot of soldiers is meaningless these days when you can take out the vast majority of China's industrial production with a few sortes. They also have no way of moving those troops and how are you going to feed that many soldiers and keep them supplied outside the China proper. They would be forced into a defensive stance and we could just pick away at their weaknesses at our leisure. They wouldn't last for more than a year.
     
  3. RedRepublic

    RedRepublic Banned at Members Request

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    If China called in a debt, America would just say no and that would be the end of it. This kind of thing has happened before in history. Australia borrowed money from England to build this little thing...
    [​IMG]
    England asked for the money back, and we said no. We'd been their (*)(*)(*)(*)(*) and fought a war for them, and our economy was turning to crap. Pay the workers, or pay England?
    We chose the workers :)
     
  4. Daggdag

    Daggdag Well-Known Member

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    What are you talking about? They have ships and plane that can be used to transport troops.
     
  5. Jarlaxle

    Jarlaxle Banned

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    How? They have no blue-water navy and haven't in centuries. Their entire military would be on the bottom of the ocean before reaching the Phillipines.
     
  6. Daggdag

    Daggdag Well-Known Member

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    north Korea does. And if they went to war with america, who better to form an alliance with than another communist nation that america hates.
     
  7. lizarddust

    lizarddust Well-Known Member

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    And what communist countries would that be?

    The next most powerful communist country after China is Vietnam. For centuries China and Vietnam have been at each other's throats. At present the two nations only barely co-exist.

    Forget about Laos, their military is tiny, poorly trained and equiped,, just barely large enough for border control and internal defense. Cuba no, and North Korea is an embarrassment to China.

    China will stand alone.
     
  8. RedRepublic

    RedRepublic Banned at Members Request

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    Firstly, North Korea modified their constitution to officially remove the pretense of communism a few years ago. Officially they now follow only the Juche philosophy, translated that's "self reliance" (despite accepting a tonne of food aid).
    Secondly, China does not want war with America. America is kinda a big trading partner for China, they need you. They don't even denounce capitalism on official news outlets because their economy is well and truly capitalist, they just make all attempts to ignore the ideological issue.
    Thirdly, China is not friends with North Korea. NK is like a bomb that they want to avoid exploding.
     
  9. reallybigjohnson

    reallybigjohnson Banned

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    I am far more concerned about the Canadians than I am about the Chinese. :/
     
  10. Jebediah

    Jebediah Banned

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    I didn't realize US Treasuries had a built in contractual put option. You have a link?
     
  11. SpaceCricket79

    SpaceCricket79 New Member Past Donor

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    We should just sell them California since they're basically communist anyway. :lol:
     
  12. The Real American Thinker

    The Real American Thinker New Member

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    Not even close.
     
  13. Franticfrank

    Franticfrank New Member

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    That was the way before, but after 10 years of war and a huge economic slowdown, nobody will support something like that for a few years yet.
     
  14. Taxcutter

    Taxcutter New Member

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    If the Chinese called in all their debt, the US would dry up as a market and the export-driven Chinese (and Japanese, and South Korean, and German) economy would collapse.
     
  15. Taxcutter

    Taxcutter New Member

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    What happens in China when their export-driven economy collapses? Revolution? Chaos? Warlordism? Would China revert to the state that sun Yat-sen found?
     
  16. Troianii

    Troianii Well-Known Member Past Donor

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    They'd be told to frell off because they didn't buy bonds that could be returned at the buyer's will.
     
  17. s002wjh

    s002wjh Well-Known Member

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    no but it will cripple the economy if US decide to default. and its not they ask US to pay up, but amount of bond they sell to other country in an instance. supply & demand. when china start selling their bond in a massive way, other invester will sell their own due to depreciation thus cause US bond/$$ to fall like rock, stock market fall, inflation follow, economy goto toilet. of course china will felt the same pain at the same time
     
  18. Dr. Righteous

    Dr. Righteous Well-Known Member

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    Never. It will continue to inflate its currency to worthlessness. So instead of a direct default, an indirect default will occur through failure of the money.
     
  19. highlander

    highlander Banned

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    NAh.... not at all, no change, from one dictatorship to another.

    Only you might get better standard of education in American schools.

    And you'd get rid of the monkey on the American nations back ...... Israel and the Zionist talmud degenerates.

    Not forgetting, all those innocents in gitmo will be released as there isn't any charges against them! Not to mention they haven't committed any crime!

    Regards
    Highlander
     
  20. perdidochas

    perdidochas Well-Known Member

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    The Chinese would be screwed. It would totally destroy their economy and ours, and they would never see the money.
     
  21. FAW

    FAW Well-Known Member Past Donor

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    You do know that a bondholder has no ability to "call in the debt" dont you?
     
  22. perdidochas

    perdidochas Well-Known Member

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    A war with us wouldn't be as easy as you think.
     
  23. perdidochas

    perdidochas Well-Known Member

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    North Korea has a green water navy, not a blue water navy. Their fleet has such low range, that they are hard-pressed to go from their east coast to their west coast. Try again.
     
  24. perdidochas

    perdidochas Well-Known Member

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    The Chinese have no love for Muslim jihadists. They would just execute all of them at Gitmo, and stop worrying about it.
     
  25. Questerr

    Questerr Banned

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    They can't. Treasury bonds don't work like that.
     

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