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Originally Posted by Tommy
Thanks Bernie, that makes sense. But it would seem to put China in the difficult position of having to buy new bonds to protect the value of their older bonds. That argues against this happening.
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Tommy, that's true, as long as China has the ability to continue to buy our bonds.
As I see it - there are two things that could break that cycle;
1. China has an economic meltdown, or
2. The US cuts back on borrowing.
The first one would also destroy our economy. I've never been keen on China or any other country 'owning' us to the extent that they do.
Steve