This is a stupid question, but how do we pay China back? | Page 2 | TigerDroppings.com
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matthew25
Ole Miss Fan
Member since Jun 2012
3977 posts

re: This is a stupid question, but how do we pay China back?

From Business Insider (when debt was over 14T during fiscal talks of mid-2011):

China - 1.2T --- 8%
US Treasury - 1.6T --- 11.3%
Social Security - 2.7T --- 19%


I will see if this has been updated. (Above was handed out in class from "Who owns America? Hint: It's not China")


Porky
Arkansas Fan
Member since Aug 2008
14390 posts

re: This is a stupid question, but how do we pay China back?
Government land, resources, or whatever is put up as collateral would be my guess if the dollar collapses.
This post was edited on 1/31 at 1:48 pm


GumboPot
LSU Fan
Saints Fan
Member since Mar 2009
29219 posts

re: This is a stupid question, but how do we pay China back?
Here is a chart of the US debt holders. It's a little dated but the percentages should still be pretty close:

Image: http://www.mygovcost.org/wp-content/uploads/2012/09/summer-2012-to-whom-does-the-us-government-owe-money-652x472.png


LINK


PaddlingTiger
LSU Fan
St. Louis, MO
Member since Jun 2010
1066 posts

re: This is a stupid question, but how do we pay China back?
Hey China...you like apples? Well we're not paying you back...how do you like them apples!


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foshizzle
LSU Fan
Washington DC metro
Member since Mar 2008
31901 posts

re: This is a stupid question, but how do we pay China back?
quote:

how do we do it? With cash or gold?


Neither.

China has Treasury bonds on deposit with major financial institutions just like everyone else. When the bond matures, the bank removes the bond from the account and adds US dollars.

It works just like for you and me, except there are lots more digits involved.

With the interest payments, the Treasury issues dollars ("prints money") that are added to the bondholder's account. Except it isn't quite printing money, keep in mind that the Treasury gets money from lots of sources too, like taxes, bailout repayments, etc.


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UncleFestersLegs
Columbia MD
Member since Nov 2010
1849 posts

re: This is a stupid question, but how do we pay China back?
quote:

From Business Insider (when debt was over 14T during fiscal talks of mid-2011):

China - 1.2T --- 8%
US Treasury - 1.6T --- 11.3%
Social Security - 2.7T --- 19%


I will see if this has been updated. (Above was handed out in class from "Who owns America? Hint: It's not China")



Uncle Ben checks in above $3T now. But we aren't monetizing the debt or anything
This post was edited on 1/31 at 2:33 pm


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roygu
Member since Jan 2004
9150 posts

re: This is a stupid question, but how do we pay China back?
quote:

Government land, resources, or whatever is put up as collateral would be my guess if the dollar collapses.



This guy agrees with you.
LINK


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Radiojones
USA Fan
The Twilight Zone
Member since Feb 2007
7884 posts

re: This is a stupid question, but how do we pay China back?
1 trillion dollar coins.


lsu13lsu
LSU Fan
Member since Jan 2008
3052 posts

re: This is a stupid question, but how do we pay China back?
US Individuals & Institutions - 42.8%
Social Security Trust Fund - 16.4%
US Civil Service Retirement Fund - 5.1%
US Military Retirement Fund - 2.4%

Total US citizens related - 66.7%

We fricked.


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BCSmess
LSU Fan
earth
Member since Jan 2013
440 posts

re: This is a stupid question, but how do we pay China back?
close walmart


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