- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: What happens if China has to call in our
Posted on 2/23/20 at 7:29 pm to TheLSUTiger
Posted on 2/23/20 at 7:29 pm to TheLSUTiger
Just mint a trillion dollar coin and pop it in the mail.
0
Posted on 2/23/20 at 7:44 pm to Iowa Golfer
quote:
Their currency would collapse in a somewhat unknown reality.
They're already playing with Monopoly money
Posted on 2/23/20 at 7:44 pm to TheLSUTiger
quote:This statement makes no sense. The issuer of debt “calls” the debt early, meaning pays off the debt earlier than maturity. The borrower doesn’t call debt.
What happens if China has to call in our
debt because of Coronavirus?
If China needs dollars before their bonds mature they can sell their U.S. bills, notes and/or bonds. The U.S. sovereign debt market is the most liquid market in the world.
Posted on 2/23/20 at 7:46 pm to Lakeboy7
I could be wrong I have been at least 2 times,but I think Trump has had over 400 businesses,and I think 4 have gone bankrupt.1 is bad, but still pretty good track record.
Posted on 2/23/20 at 7:47 pm to TidalTim
It’s their most pathetic talking point easily.
Posted on 2/23/20 at 7:55 pm to TheLSUTiger
China bought debt with risk. I don't think they will be paid back.
Posted on 2/23/20 at 7:56 pm to TheLSUTiger
They can't call it in. The debt is in the form of bonds with a maturity date.
Posted on 2/23/20 at 7:57 pm to TheLSUTiger
We'll offer to give them Guam to settle the debt.
Jokes on them though when they start moving troops over there and it tips over
Jokes on them though when they start moving troops over there and it tips over
Posted on 2/23/20 at 8:20 pm to TheLSUTiger
If they call it in, guess what, we have a more powerful military.
Posted on 2/23/20 at 8:30 pm to TheLSUTiger
quote:
debt because of Coronavirus? Can they if they need the money to survive? Asking for a friend.
Our debt should be far less than the sanctions placed on them for letting this shite happen
Posted on 2/23/20 at 8:47 pm to TheLSUTiger
China doesn't hold all that much.
401k's and Investor Fund Accounts are the vast majority. Stuff like Union, Teachers, Public Workers, those retirement fund accounts, this is where the vast overwhelming majority of US Debt issuance lies.
Think of it as employee stock ownership. All those retirement funds are the employees and the debt is held by them. Sooo, as long as portfolio managers keep buying US Debt and the unions and other employee groups keep hiring these fund managers, the retirement funds will continue to firewall the US treasury.
401k's and Investor Fund Accounts are the vast majority. Stuff like Union, Teachers, Public Workers, those retirement fund accounts, this is where the vast overwhelming majority of US Debt issuance lies.
Think of it as employee stock ownership. All those retirement funds are the employees and the debt is held by them. Sooo, as long as portfolio managers keep buying US Debt and the unions and other employee groups keep hiring these fund managers, the retirement funds will continue to firewall the US treasury.
Posted on 2/23/20 at 9:13 pm to TheLSUTiger
When you owe the bank $10,000 that’s your problem.
When you owe China one trillion dollars, that’s their problem.
When you owe China one trillion dollars, that’s their problem.
Posted on 2/23/20 at 9:45 pm to TheLSUTiger
Dude, that’s not how bonds work.
China can’t just immediately call in the full payment on a 30 year treasury bond. We pay it over the life of the bond in accordance with the repayment agreement made at time of sale. Doesn’t matter if they want the money now; that’s not an option.
The most China can do is resell the bond to someone else, possibly marginally nudging interest rates. And even on that front, they only hold like 5% of our debt; not enough to create any major movement. But there’s exactly 0 possibility that we’d have to pay the full outstanding balance of our loans tomorrow. You can rest easy.
China can’t just immediately call in the full payment on a 30 year treasury bond. We pay it over the life of the bond in accordance with the repayment agreement made at time of sale. Doesn’t matter if they want the money now; that’s not an option.
The most China can do is resell the bond to someone else, possibly marginally nudging interest rates. And even on that front, they only hold like 5% of our debt; not enough to create any major movement. But there’s exactly 0 possibility that we’d have to pay the full outstanding balance of our loans tomorrow. You can rest easy.
Posted on 2/23/20 at 9:47 pm to TheLSUTiger
The US has to agree that the debt be sold and to whom.
It’s not like China is the banker.
It’s not like China is the banker.
Posted on 2/23/20 at 9:51 pm to TheLSUTiger
If they call in our debt, we go into a deep hole. If we go into a deep hole then the rest of the world goes into the same hole.
Posted on 2/23/20 at 9:52 pm to funnystuff
quote:
The most China can do is resell the bond to someone else, possibly marginally nudging interest rates. And even on that front, they only hold like 5% of our debt; not enough to create any major movement. But there’s exactly 0 possibility that we’d have to pay the full outstanding balance of our loans tomorrow. You can rest easy.
Yep. And selling below market value would hurt them more than it would hurt us.
Posted on 2/23/20 at 9:54 pm to TheLSUTiger
quote:
debt because of Coronavirus? Can they if they need the money to survive? Asking for a friend.
What does this even mean? Call in our debt?
Posted on 2/23/20 at 9:58 pm to Eli Goldfinger
quote:
The US has to agree that the debt be sold and to whom.
No, that is just nonsense.
They can sell their bonds any time they so choose just like everyone else.
quote:
It’s not like China is the banker.
That is exactly what it is like and the entire purpose of the bonds, keeps FedGov out of the banks and saves them money using individuals as quasi banks.
Posted on 2/23/20 at 10:12 pm to cave canem
quote:
They can sell their bonds any time they so choose
Nope...both parties have to agree on the buyer.
Posted on 2/23/20 at 10:19 pm to Eli Goldfinger
quote:US public debt instruments are traded throughout the world. No one seeks or needs governmental approval for those routine transactions.quote:Nope...both parties have to agree on the buyer.
They can sell their bonds any time they so choose
The first time is forgivable ignorance of debt markets. Doubling down a second time .....
====
Eli calls his broker
Eli: Invest $10k in T-Bills.
Broker: Gee, I don't know whether FedGov will let anyone sell to you ....
This post was edited on 2/24/20 at 9:58 am
Page 2 of 3
Popular
Back to top
Follow TigerDroppings for LSU Football News