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DemocratSinceBirth

(99,705 posts)
Fri Jan 13, 2017, 05:33 PM Jan 2017

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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Loans from China. Do I have this straight? (Original Post) DemocratSinceBirth Jan 2017 OP
Do you have a link to this? It looks very interesting! angstlessk Jan 2017 #1
Somebody here explained it to me. I knew you can't call in a loan whenever you want. DemocratSinceBirth Jan 2017 #3
Think of it like a bond. Phoenix61 Jan 2017 #2
If they are base on Treasury Bills, Wellstone ruled Jan 2017 #4

DemocratSinceBirth

(99,705 posts)
3. Somebody here explained it to me. I knew you can't call in a loan whenever you want.
Fri Jan 13, 2017, 05:41 PM
Jan 2017

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.

Phoenix61

(16,952 posts)
2. Think of it like a bond.
Fri Jan 13, 2017, 05:41 PM
Jan 2017

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.

 

Wellstone ruled

(34,661 posts)
4. If they are base on Treasury Bills,
Fri Jan 13, 2017, 05:46 PM
Jan 2017

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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