China wants US to Guarantee its Treasuries

[GTKeeper]

Originally posted by: halik

Originally posted by: GTKeeper

Originally posted by: 0marTheZealot
You do know that if China decides that these treasuries aren't worth as much, they could flood the market with all this extra cash and put the US into a huge inflation cycle? Where do you think we are getting the money to do the day-to-day operating of the government? To pay the soldiers? To buy all these fancy new toys? To repair our infrastructure, etc etc? China (and other creditor nations like Norway, Japan, Saudia Arabia) are buying our debt in the hopes that when the bonds come due, we will make good on them. If these countries don't think they can make a buck, then they stop buying up our debt, and the dollar will plunge like a rock.

Let them flood the market with Ts, see how they come out from the other end on that.

You're really clueless man,
the reason why we do business with china is because it's MUTUALLY BENEFICIAL. That is if either party walks away from the table (china puts inflationary pressure on US, US puts tarriffs on china, quid pro quo goes on) we'll end up in great depression. Protectionism is EXACTLY what happened in 1930s.

Also take your 'america fuck yeah' attitude back to early 2000s, those days are over.

WTF kind of statement is that. I am just responding to the Chinese MORONIC statement of forcing us into something we don't even have to do. The way the market works is by issuing the treasury itself is a guarantee of a sort. What do they want? Ben go there and personally say 'your money is safe' ? What kind of guarantee do they want? They are making a stupid demand and I am making a comment on its stupidity.