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Interestingly you omitted the currency of that loan in your comment. Thinking on that should answer your question.
by psergeant 8y ago
Interestingly you omitted the currency of that loan in your comment. Thinking on that should answer your question.
- nerfhammer 8y agoThese bonds generally have a fixed term of up to 30 years, under what scenario would the US have to repay its bonds all at once, before they're due?
- ChuckMcM 8y agoIt wouldn't. The general threat is that China would sell these treasuries on the market and flood the supply. That would make it much harder for the US to sell new treasuries (which it does every quarter) and so the discount it would have to give would be higher (the bond yield would go up) and that would mean more expensive debt repayments in the future.
- nerfhammer 8y agoOk, that's more realistic