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Thanks for posting this, it was well written and seems rational. One potential domino you left out is what happens if the Chinese economy crashes and they can

Thanks for posting this, it was well written and seems rational. One potential domino you left out is what happens if the Chinese economy crashes and they can no longer buy US debt, if this happened and the US had to start inflating their currency it seems like that would be the worst possible scenario, globally speaking

MR4D 7y ago
I don't think it will be an issue, for two reasons: #1 - They only own about 5% of US government debt anyway (about as much as Japan) [0] [1] #2 - They actually own less than they did a few years ago [1][2]. This tells me that their buying has become somewhat inconsequential already. [0] - https://www.thebalance.com/who-owns-the-u-s-national-debt-3306124 https://www.thebalance.com/who-owns-the-u-s-national-debt-33... [1] - https://money.cnn.com/2015/04/15/news/economy/japan-china-us-debt-treasury/ https://money.cnn.com/2015/04/15/news/economy/japan-china-us... [2] - https://www.thebalance.com/u-s-debt-to-china-how-much-does-it-own-3306355 https://www.thebalance.com/u-s-debt-to-china-how-much-does-i... EDIT - I meant to also say thank you!
DeonPenny 7y ago
No one has a real worry about this cause the world needs more dollars because of the debts they'll owe to china. The debt to china is very much not a fear.