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Fri Jan 13, 2017, 04:33 PM

Loans from China. Do I have this straight?

Loans have due dates so they can't be called before the maturity date. This means they can't dump their loans to us to hurt us. However they can sell the loans they currently own thus making it harder for us to sell new loans to finance our government.

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Reply Loans from China. Do I have this straight? (Original post)
DemocratSinceBirth Jan 2017 OP
angstlessk Jan 2017 #1
DemocratSinceBirth Jan 2017 #3
Phoenix61 Jan 2017 #2
Wellstone ruled Jan 2017 #4

Response to DemocratSinceBirth (Original post)

Fri Jan 13, 2017, 04:38 PM

1. Do you have a link to this? It looks very interesting!

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Response to angstlessk (Reply #1)

Fri Jan 13, 2017, 04:41 PM

3. Somebody here explained it to me. I knew you can't call in a loan whenever you want.

But they can start selling the loans they own. This will reduce the demand for bonds making it harder to finance our debt. They can also stop buying new ones.

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Response to DemocratSinceBirth (Original post)

Fri Jan 13, 2017, 04:41 PM

2. Think of it like a bond.

China sells all the US bonds it is holding to those who are interested in buying. When the US tries to sell its own bonds there won't be any buyers. Actually, that would be good in the long run. It would prevent Trump and his thugs from running up the national debt.

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Response to DemocratSinceBirth (Original post)

Fri Jan 13, 2017, 04:46 PM

4. If they are base on Treasury Bills,

or Bonds,they are Marketable at any time. Usual debt sales reflect these items. China has already dumped several Billion in US Treasuries in order to prop up their Yuan. Commodities usually are bought and sold in Dollars,in that lies our Nations Caution as to how we treat other trading Partners. Trump runs his mouth with out any so called push back. That ends a week from today,all bets are off.

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