RE: America Great again!
November 9, 2016 at 11:22 am
(This post was last modified: November 9, 2016 at 11:27 am by Anomalocaris.)
(November 9, 2016 at 10:58 am)Mathilda Wrote:(November 9, 2016 at 10:43 am)Tazzycorn Wrote: You think? Trump is not going to do anything to inconvenience Russia's best ally. He's too afraid of having his loans called in.
Talking of which, I bet Trump doesn't know how the US owes so much debt to China that it can call the shots. I'm not sure Trump will enjoy having to placate their demands.
https://www.thebalance.com/u-s-debt-to-c...wn-3306355
Quote:China's position as America's largest banker gives it some political leverage. Now and then, China threatens to sell part of its debt holdings. It knows that, if it did so, U.S. interest rates would rise, which would slow U.S economic growth. China often calls for a new global currency to replace the dollar, which is used in most international transactions. China does this whenever the U.S. allows the value of the dollar to drop, which makes the debt China holds less valuable.
China selling parts of its American debt holding cheapen the rest of their holdings. So it's not exactly a credible scenario except if china and the US had a suicide pact.
