What Happens When China Stops Buying US Debt Notes?
What Happens When China Stops Buying US Debt Notes?
2 trillion dollars. That is what the Federal Reserve is going to have to come up with to float, and we do mean literally, float the United States in the upcoming year. One can think of it in this manner, as a bank that writes checks to itself. Eventually, with no outside income to guarantee those checks, the inevitability will happen. An economic collapse of Titanic proportions and one that the nation that is America, may not be able to withstand.
China Buys US Debt
The Republic of China buys the debts, which the number one debtor in the world, the United States, spews out in the form of US Treasury 30 Year Bonds. China buys these notes right along side Russia to the tune of 80% each year. However, there are changes ongoing in both China and Russia, and apart from that interior turmoil, which will threaten the flow of Yen and Rubles eventually; there is the grumblings from Beijing that the Chinese are becoming fastly indifferent to the buying of the American debt notes. If that happens, then the entire United States borrowing schematic will implode and we will be broke.