Debt Problems
Is it time for China to cash in some of Americas debt?
I mean China has its hand out right now and it owns a substancial amount of American debt, why not just cash some of that in instead of asking everyone else for assistance? America's debt I would rather see some of the National Debt paid off then just sending funds and supplies. China broke? I think China has more money then you think. Excellent feed back John
Public Comments
- because then that would screw americans over, and hopefully our president has enough brains to not give out even more of our money.
- if china is broke, why would they help out America? the world's bank is gonna fail anyway and sooner than later, people are gonna have to get a world currency mark either on their right hand or forehead. it's a shame this will happen, but it is prophesized. try reading revealation some time.
- The way the Chinese have purchase debt is to buy bonds. Those bonds have a face value. If they want to cash in early, they will have to sell at the going rate. The challenge is to find willing buyers. If there are fewer buyers then they will have to accept less money than if they held the bonds to maturity. The bond market tends to go up when the stock market is down and vice versa, but not always. Large scale buyers of debt instruments typically stagger their purchases so that they come due over a long period of time, to reduce liquidity risk. If terms are favorable when a bond matures, then they may buy another bond. If not, they may take the cash and do something else with it. If the Chinese decide they do not want to buy our bonds at the market price, they will in effect reduce the price because in order to not have to pay back the money, we'll have to sell new bonds to someone else. The fewer buyers there are, the more interest we have to pay on the debt. Its an international market. These are not simple transactions between two parties, when the sale takes place, its between and among all eligible buyers and sellers
