Senator Graham Wants to Default on $1 Trillion Debt Owed to China

[Nilgiri]

Okay, that makes sense. Would it be an option for China to sell these bonds to 3rd countries interested in increasing their USD reserves? At a loss, if necessary. That might dump some of the risk for China.

Information on this will only come out later. Right now there is probably some back-channel stuff going on and theres fog of war from corona crisis more generally. There would be somewhat of a reluctance to buy T-bonds if they originate from China now I would feel "baked in" already just from this US threat.

Lot of this stuff I'm talking about is very broad + theoretical....its never really been done at this scale before....because no one wants to rock the boat that much. So how the chips fall really no one can have any good full prediction on it.

 

[Pax Ottomana]

Information on this will only come out later. Right now there is probably some back-channel stuff going on and theres fog of war from corona crisis more generally. There would be somewhat of a reluctance to buy T-bonds if they originate from China now I would feel "baked in" already just from this US threat.

Lot of this stuff I'm talking about is very broad + theoretical....its never really been done at this scale before....because no one wants to rock the boat that much. So how the chips fall really no one can have any good full prediction on it.

Whatever does happen eventually, I think it's fair to assume it'll happen gradually rather than overnight. China still has the major problem of relying too much on US consumerism. That probably needs to be reduced and counter-balanced with significantly increased trade with the rest of the world. I know we're talking about a macroeconomic issue here, but I think military deterrence will also play an important role. 2019 saw another record in global defense spending for a good reason. No one wants to be caught off guard.

 

[VCheng]

The 4th question (or maybe the "zeroth" chronologically) is the deepest one, why doesn't China dump them right now (say in small streams and as non-serialised as possible) at this major hint of what threat the US has up its sleeve and declared it brazenly.

Anyone can answer this 4th question? It has to do with the underlying reason for formation of the T-bill stockpile to begin with.

Does anyone remember what Xi Jinping told Obama about what kept him awake at night, and how that might provide a clue to the answer?

(In summary: demographics.)

 

[zectech]

If China does not sell before US defaults, there is gonna be phase two: lawsuits against China for the US bioweapon attack on China.

 

[master_13]

china knows US won't dare default on their loans. If US wants to extract trillions out of china, the last thing they will do is to default on the loan, which is tied to American bond credibility. You can argue American allies won't care, trust me, they do. And so do rest of the countries who also buy American bonds, who are neither American foes or allies.

 

[Nasr]

America's economic power, has been based on the petrodollar. The entire world's economic growth hinged on oil, which formed the basis of dominance of the petrodollar. Until 2019, countries like Russia, China, Venezuela and Iran were working on (successfully) to cut out the petrodollar from the equation. This caused an enormous strain on the American economic power status. Threatened by this, america went about attempting to fight back the resistance put up by Russia and China. With regime change attempts in Syria and destruction of Libya. America even used Saudis to kill the oil market with over production of oil, in order to hurt Russia as badly, possible. Furthermore, it even ramped up it's own oil production with fracking tech. All in all, America's attempts to stave off threats to the petrodollar, failed miserably.

Today, not only the petrodollar is weakened, but also other means and mechanisms which America uses to exert it's economic power, are now weakened. With Russia establishing an equivalent of the American owned International Payment System and China establishing the counter to American World Bank & International Monetary Fund. Even Iran has bypassed some american sanctions. All of this when american trade war on China have born no favorable results.

$26 trillion public debt, $50 trillion debt in the private sector. Oil industry has sunk in an irreversible debt spiral, following the systematic culling of oil prices. 26 million americans are unemployed, and rising daily. Meanwhile the u.s military is given $700 billion chunk to carry-on with it's enormous, disproportionate size. All this points to one clear indication, that america will collapse by virtue of it's unsustainable military size, insatiable appetite for consumption via accumulation of debt and it's Achilles heel which is the petrodollar. The end is near for the american empire, and like all empires before, it is struggling against the tide, gasping to stay relevant, like a fish out of water. A lot of alleged educated fools will claim that america will come out from this unscathed. But the reality is that america's end is all but certain. No matter how hard they try it's game over for america!

 

[Han Patriot]

America's economic power, has been based on the petrodollar. The entire world's economic growth hinged on oil, which formed the basis of dominance of the petrodollar. Until 2019, countries like Russia, China, Venezuela and Iran were working on (successfully) to cut out the petrodollar from the equation. This caused an enormous strain on the American economic power status. Threatened by this, america went about attempting to fight back the resistance put up by Russia and China. With regime change attempts in Syria and destruction of Libya. America even used Saudis to kill the oil market with over production of oil, in order to hurt Russia as badly, possible. Furthermore, it even ramped up it's own oil production with fracking tech. All in all, America's attempts to stave off threats to the petrodollar, failed miserably.

Today, not only the petrodollar is weakened, but also other means and mechanisms which America uses to exert it's economic power, are now weakened. With Russia establishing an equivalent of the American owned International Payment System and China establishing the counter to American World Bank & International Monetary Fund. Even Iran has bypassed some american sanctions. All of this when american trade war on China have born no favorable results.

$26 trillion public debt, $50 trillion debt in the private sector. Oil industry has sunk in an irreversible debt spiral, following the systematic culling of oil prices. 26 million americans are unemployed, and rising daily. Meanwhile the u.s military is given $700 billion chunk to carry-on with it's enormous, disproportionate size. All this points to one clear indication, that america will collapse by virtue of it's unsustainable military size, insatiable appetite for consumption via accumulation of debt and it's Achilles heel which is the petrodollar. The end is near for the american empire, and like all empires before, it is struggling against the tide, gasping to stay relevant, like a fish out of water. A lot of alleged educated fools will claim that america will come out from this unscathed. But the reality is that america's end is all but certain. No matter how hard they try it's game over for america!

This virus is the final straw breaking the camels back. Now it depends whether the deep state and China/Russia agree on a new arrangement. Without Saudi Russian oil and Chinese manufacturing backing the dollar, its pretty much toilet paper. Trump does not dare default... It will get out of control and implode.

 

[Asian.Century]

Probably China will loose all the money.