China decides to collect its $1.3 Trillion

Discussion in 'The Hangout' started by hades_leae, Jun 21, 2016.

0/5, 0 votes

  1. hades_leae

    hades_leae Active Member
      48/93

    Blog Posts:
    0
    Assuming this happens sometime in the future, would SHTF happen? I was thinking about it a few hours ago and wanted to know if any other country in the international community decided to demand it's money owed to it by America, what would happen to the country?

    Would the government just increase taxes to pay for the debt, or would there be a financial economic collapse?

    I'm very curious to know what would happen, as this is possible.

    China wouldn't do this right?
     
  2. Arkane

    Arkane Master Survivalist
      275/297

    Blog Posts:
    0
    The USA would just print more money, that way everyone holding assets in US dollars pays through inflation not just the USA itself!
    but not before the "IN" group has dumped there us dollars!
     
  3. filmjunkie08

    filmjunkie08 Active Member
      33/47

    Blog Posts:
    0
    China is not as monetarily solid as it used to be. China could ask the US for payment and I think the domino's would begin to fall. Country by country. Who I wonder would benefit in this scenario? Any particular country? So many countries, it seems, are trying to keep their heads above water as well.
     
    hades_leae likes this.
  4. djordjem87

    djordjem87 Member
      18/23

    Blog Posts:
    0
    Printing that much money eventually leads to economic collapse and therefore a world war. It happened twice so far as we all know. This type of economy is not a healthy one and the rating and the value of American dollar is already fake, so to say. The real values is not as we see it, it is forced but this will not last for a long period of time. If Chine ever do this, it will be an excuse or just a cause if you will to start a conflict. This is how everything works and it is all because we made money.
     
  5. Arkane

    Arkane Master Survivalist
      275/297

    Blog Posts:
    0
    of course the other option is pick a fight with china and justify a default
     
  6. My3Sons_NJ

    My3Sons_NJ New Member
      8/23

    Blog Posts:
    0
    The economy has been some disrupted due to the Affordable Care Act and the substantial number of frivolous and harmful regulations added over the last seven years that the $1.3 trillion is basically a "sunk cost" at this time. Either the U.S. will default or, more likely, just print another few trillion dollars to join the $4 Trillion that the Fed has conjured up already. The only reason why it won't precipitate a war is because the rest of the Western world is doing the same thing (notice the negative interest rates and massive stimulus in the Eurozone and Japan).
     
  7. crimsonghost747

    crimsonghost747 New Member
      8/23

    Blog Posts:
    0
    They CANNOT simply say "ohh hey I want my money back" because it's not a mafia-type deal where you give an X amount and then go and collect when you need to. These are bonds with maturity dates, and on the date of the maturity the money will be paid back. Now how countries juggle with this is of course releasing a new bunch of bonds to bring in the required cash just before their old bonds reach maturity.

    So China cannot claim their money back before the bonds which they own reach maturity. It's really as simple as that.
     
    Arboreal likes this.
  8. hades_leae

    hades_leae Active Member
      48/93

    Blog Posts:
    0
    Now I know that it would cause a collapse but I don't understand why you said that it would start a world war, why would that happen? Would it be because America would go crazy because China was the reason why it's economy failed.

    I think that it would be no other nations fault but Americas for putting itself in a situation where it would have to bend to other nations wants and needs on order to keep them from simply demanding payment. The American government has failed us all, I can't wait to see a new world reserve currency.
     
  9. John Snort

    John Snort Well-Known Member
      92/93

    Blog Posts:
    0
    Actually for some reason China and other governments from 2015 onwards started dumping U.S debt by liquidation of Treasury Securities. None of them would simply come out one day and demand their money back as they [the treasury securities] have maturity dates.
     
  10. Arkane

    Arkane Master Survivalist
      275/297

    Blog Posts:
    0
    China is using some of that money to buy gold, not gold on paper but physical gold!
    Those counters in malls buying used gold! funded by china! and the physical gold mostly go's direct to china
    and has been for a decade now!
    China is converting US$ into physical gold because they know it is going to crash!
     
  11. tb65

    tb65 Active Member
      33/47

    Blog Posts:
    0
    All I can say is that if they decide to do this, America better grease it's asshole. Excuse the expression but that's the easiest way I can put it. I think America has been in debt for way longer then most of us even knew. The only way this won't happen is if America piles on more debt to pay off the previous ones. If Trump becomes president you better believe America will be in some debt, because I think he'll pay off our previous debt with another one like refinancing the country. I don't really know what will happen but I think this is more likely.
     
  12. crimsonghost747

    crimsonghost747 New Member
      8/23

    Blog Posts:
    0
    This is the method that is being currently used by America and pretty much every single country in the world. Even those who are capable of paying back the debt nowadays choose to push out new bonds because the interest rates are so low.
     
    tb65 and Arboreal like this.
  13. Arboreal

    Arboreal Active Member
      36/47

    Blog Posts:
    0
    A lot of uninformed answers in this thread, crimsonghost747 has the correct answer - it doesn't work like that. Also, China has no interest in causing America's financial collapse anyway, they'd lose almost one fifth of their exports if this happens.
     
  14. glreese

    glreese Member
      18/23

    Blog Posts:
    0
    They couldn't do that. Because then America couldn't purchase their goods. If America stops purchasing their goods their economy will fall. If America's economy falls so does a lot of other countries that depend on America. This is a question I was always concerned about, but my civics teacher assured me it is very unlikely to happen.
     
Loading...
Similar Threads Forum Date
Hypersonic Weapons Of Russia And China, Us Unable To Defend Against News, Current Events, and Politics Dec 17, 2018
The Us And China Are Preparing For All Hell To Break Loose In North Korea News, Current Events, and Politics Dec 20, 2017
What Is The Possibility Of China Becoming The Next Superpower? News, Current Events, and Politics Jul 19, 2017
China warns Australia: stay out of the South China Sea. Australia Jul 16, 2016
China warns Australia: stay out of the South China Sea. The Hangout Jul 16, 2016

Share This Page