Quote:
Originally Posted by fluffy0000
kirakira nobody is forcing China too buy US Treasury notes? The simple fact is money talks and B.S. walks. As of 2009' through the financial meltdown and beyond - China plans on purchasing US Treasury notes. Hundreds of Billions of USD $ Treasury Notes. Go check the interest rate on a USD 3yr Treasury note and it's 3% thats 1% percent return per year. Who's your daddy?
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Are you nuts? You do know the US treasury is printing money like no tomorrow and committed $54Ts in more spending promises. You think they got anything in the bank?
If China stops buying treasury notes and starts selling, what do you think will happen to the US dollar and the economy? China should have never bought the T-notes in the first place (they are dellusional if they think the US can actually pay it back). Now they are in a rock and a hardplace now because:
- If they buy more T-notes, they keep the value of their previous $700B T-note investment, while propping up US's phony economy for the past decade but how long can they do this for?
- As soon as they stop, the US dollar will fall through the floor, the US economy will practically implode and China can say bye bye to $700B US demoinated T-notes
The only hope for China is for US to get a clue, stop the national debt, stop consuming on credit and start saving, producing and investing and for the Chinese themselves to stop being such tight asses and start spending.
The only question is, when will the world realise none of them needs the US to consume like maniacs and stop throwing them a line of credit forever. They all forgot the US dollar is a fiat currency, it's not backed by gold or anything since the 70s.