TOOLS I Have A Question

westernrvparkowner wrote:

Big Katuna wrote:
For what it’s worth, it’s a house of cards. All of the above info about moving information around about people who sell stuff made somewhere else to people who use it, throw it away and buy something else or on the way to a Drs appt.

We are one big service economy looking for a decent screwdriver.

And when China decides to quit loaning us money, you are going to wish you had a good screwdriver.

Here is one.

Clicky

The US national debt is approximately $21 trillion dollars. Approximately 2/3rds of that amount is owed to US citizens and US government accounts. Of the $6.3 trillion owed to foreigners, China owns $1.1 Billion. That is about 5 percent of our national debt, while significant, it isn't a percentage that allows the tail to wag the dog.
Like any debtor/creditor arrangement, it is in the best interest of the creditor for the debtor to remain financially healthy, that is how they get repaid. By comparison, the US represents about 20 percent of China's export market. They have as much or more to lose than the US should something happen that breaks all ties between the two countries. I wouldn't be too concerned that China will suddenly stop purchasing US debt and redeem all of their US treasury bond holdings.