Discussion in 'Economy' started by 5stringJeff, Jun 2, 2006.
It's not the Chinese. It's us!
Yes, but between the Chinese and Japanese, you're talking about roughly a trillion dollars their central banks are sitting on, out of a total of roughly (I think) $10~12 trillion dollars in circulation. If they decided to unload these rapidly depreciating dollars, it could cause a panic as all the other little countries shown unload theirs as well, hoping to head for the exits while their dollars are still worth something. A domino effect, in other words. If that happens, you're looking at more like 2 trillion dollars suddenly dumped in our economy. Imagine what would happen to our already high inflation rate.
Yeah, we only owe the ChiComs $321 Billion...
Imagine what would happen to the world. Tis why I don't think it will happen.
The results would be a disaster for everyone. Im no economist, but the global economy is so intertwined that a glitch here of that magnitude would effect everyone and they know it IMO.
If you look at the bar chart, you'll see that Japan is already selling off their debt holdings, to the tune of $33B, or about 5% of their holdings. I do understand your concerns about a rapid inflation of the dollar, but only about 1/3 of our debt is foreign owned. I think we would be able to get out of it all right.
That's only about 4% of the entire debt, which is nothing, percentage-wise.
Oh, well then, YOU pay the interest on it and leave me and my family out of it... I mean really... if it's "nothing." As for me and my family, I'd rather not pay juice to the Chinese on $1 let alone $321 billion.
It doesn't work that way. You and your family though are free to move onto some other country, less onerous.
So, the Chinese hold $321 billion dollars interest free? How nice of them!
How about I stay right here and fight the Republican Party's spend-and-spend-some-more fiscal policy?
Feel free. Good luck.
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