so...the US regained the status of the unquestionable global leader...

  • Thread starter Thread starter gimpshiznit
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I'm asking this because I really honestly don't know...

How does China loan us money? Seriously, how does CHINA loan the United States...UNITED STATES DOLLARS?

And yes, I honestly have no clue and am asking because I'm curious. All I have taken is Microeconomics 101.
 
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Of course they will decouple when it makes sense to do so.

2012
 
Uh, China "calling in the debt" would equate to fucking themselves over and the entire world. They might be assholes, but they are self-interested assholes.
 
they purchase u.s. securities

recently we've found a dimishing market for these products and i believe in 2008 our own central bank bought something like 80% of our treasury securities

our budget deficit has grown so large (i believe 1.5 trill if i'm not mistaken) that its basically impossible for us to sell that much to foreign nations
 
america just keeps looking for ways to hold everyone hostage

as if ten thousand nukes isnt enough
 
Anyone else find this whole "recession" thing weird?


It's like there is nothing that has really changed with the world. Still have the same amount of raw materials coming out, same amount of people, same amount of places to live, technology developments are still being made....


So what is it that changed this? People just stopped demanding more goods? People over valued things too much? People just get tired of trying to produce? Needed a break?


I mean yeah I understand the housing bubble popped...those people owed a lot more money than they could ever pay. So, those that loaned that money thought they had a lot more than they really did...over valued I suppose. and that comes in the form of stocks and so a whole bunch of people that owned those stocks thought they had a lot more wealth than they did.

So then those people that owned the stocks...they thought they were worth more so they were buying a bunch of shit because they thought they were set for life.

And the companys they worked for were paying a bunch more money to their employees and spending more, but they also thought they had a bunch more money...


So basically, everyone thought they had a whole bunch of extra paper money than they really did, but nothing really changed....physically... in this world other than the number of little rectangular pieces of paper people thought they had. but, those pieces of paper dont actually have to represent a physical form just a 1s and 0s in a computer....and some pieces of paper are worth more than others just because they have a different picture....
 
Dismay, what you've just said is one of the most insanely idiotic things I have ever heard. At no point in your rambling, incoherent response were you even close to anything that could be considered a rational thought. Everyone on this forum is now dumber for having read it. I award you no points, and may God have mercy on your soul.
 
It's not a "loan" like you may be used to (eg. you give your friend money directly). The US Treasury issues bonds, which China buys. Therefore, we owe China the face value of the bond, plus interest. They pay with real money, so in the end they've given us money in exchange for a promissory note of repayment.
 
It doesn't seem like you understand what happened, and judging by your second sentence I doubt you can or will
 
Makes sense, doesn't it? They're far more attractive right now due to the volatility of the Euro and all that.
 
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