Doesn't China Own Much Of Our Debt?

[the_liberal_grandpa]

What would happen if they decided to simply cash in a few trillion dollars of the US debt they own?

[the_liberal_grandpa]

1. China owns about $750 billion of our debt so

What if they sold several billions?

[Deuxcents]

2. I have asked this before..I'm no expert but I'm pretty sure it won't be pretty

[the_liberal_grandpa]

4. I think they should do it or

at least threaten to. I think SHitler would crap in his pants. Assuming he understands it.

[JBTaurus83]

3. Yes

I was wondering the same.

[drray23]

5. Debt cant be "cashed in".

Its held in the form of bonds they invested in.
So, the only thing they can do is sell some of their bonds. However, if they sell too much at once it's value would collapse, they would not get back anywhere near their investment and market would simply go down more.

They don't need to do that right now , the market is already unstable and going down.

[lapfog_1]

9. yes, it is sort of a suicide pact

they start selling their bonds on the open market, there will be NO takers at anything like previous face value, never mind maturity value.

So Chinese and China lose money... but it will hurt us more. Sales of T-bills will dry up. refinancing our debt of what $38T?? lol that won't happen. if done at the right moment, it could end the USA as a world economic power.

The dollar might be like 1930s Deutsch Marks. Probably not, but anything is possible with an idiot like Trump and Ron Vara at the helm.

[enid602]

10. Shithead

They get paid when the bonds come due. T Bills have maturity dates ranging from 4 to 52 weeks, so on average, we have to roll them over frequently. About every 60 days.

Sometimes it’s best to act wisely and respectful to people who owe you a huge amount of money. But then again, shithead always thinks he’s holding all the cards.

[Raven123]

6. Japan owns more. China is second

https://usafacts.org/articles/which-countries-own-the-most-us-debt/#embed

Apparently, it would not be good for China to dump debt, but they have been decreasing the amount of debt they carry.

[Torchlight]

7. Beijing is second-largest foreign holder of U.S. government debt after Japan

Although China has been rreallocating assets into other investments heavily over the past four years, such as gold, to optimize its reserves and mitigate risks associated with holding a large amount of U.S. debt (which today, seems a wise precuation on thier part). Still, it's"only" about 750 billion, a relvatively small portion of the total U.S. national debt, which stood at approximately $35.3 trillion as of September 2024.

(Global Times, april 18)

[enid602]

11. The $38T

Most of the $38T is held by US citizens, and a large amount of the $38T consists of amorphous debts held by the US Govt, supposedly backed up by ‘govt-owned assets.’

[ImNotGod]

8. In an economic pissing contest both countries will suffer it just comes down to which country doesn't panic when egg

prices go about $2 a dozen. I'm betting China doesn't.

[Johonny]

12. Good thing the GOP isnt planning to issue 4.5 trillion

In new debt soon . . .