GOP senator: 'We should explore' not paying US debt to punish China
Source: American Independent
By Josh Israel -April 30, 2020 6:05 PM
Marsha Blackburn is following the GOP's playbook in blaming China for the coronavirus.
Sen. Marsha Blackburn (R-TN) suggested on Thursday that the United States should consider defaulting on its debt to China as punishment for the COVID-19 pandemic.
In a Fox Business interview, host Stuart Varney said that she had suggested that the United States "not repay them the trillion dollars that we owe them." That, he said, would be "abrogating America's debt."
He added, "We've never done that before."
Blackburn responded by saying many Tennesseans are out of work and the pandemic has cost the U.S. economy trillions of dollars. She blamed China for the situation: "What China has done is a tremendous cost. Should we consider doing this? Yes, indeed," she said. "It is something we should explore as to how to hold them accountable."
Read more: https://americanindependent.com/marsha-blackburn-coronavirus-china-debt-default-senate-gop-covid-19/
-snip-
My rant is posted on another thread............I had to take step back..........she has no clue about the economic fallout of this being thrown around............and her trying to deflect what her libertarian leaders have done and are doing is just amazing..........
riversedge
(70,310 posts)Read more: https://americanindependent.com/marsha-blackburn-coronavirus-china-debt-default-senate-gop-covid-19/
.......Defaulting on the national debt would have serious and far-reaching consequences. The United States' credit rating is based on its record of reliably making payments on its debt. A lowered credit rating would likely mean higher interest rates for future borrowing.
Experts say the fallout from a debt default would include decimated global markets, frozen banking operations, the weakening of the value of the dollar, and the destruction of Americans' investments.
"The devastation to the United States would be so severe that it would take decades to recover from the Depression caused by a default and the attendant dumping of trillions of dollars of U.S. Treasury securities on the global financial markets," analyst Dick Bove of Rafferty Capital Markets wrote in a report to clients.
The suggestion is the latest in a series of anti-China Blackburn has made.
On April 8, she tweeted that China should voluntarily "waive our debt" because of the coronavirus..................
turbinetree
(24,720 posts)this is being talked about in her circle of nuts...........they just don't care, deflection of what is happening is now the game, and they are playing a deadly game..............
no_hypocrisy
(46,202 posts)1. Even Saudi Arabia wouldn't lend to the U.S. after a default on the China debt.
2. This event might be the catalyst that propels the world into using any other currency but the U.S. Dollar. Petro-Dollars, the Chinese Yuan, whatever. It just won't be the U.S. Dollar anymore.
3. A Depression from which we'll never climb out of.
4. The Pentagon will be dependent upon only what we can afford to pay it.
dalton99a
(81,599 posts)Stuart G
(38,449 posts)dawg day
(7,947 posts)And they know there's no price to be paid, because it will be the Democratic president who has to deal with the fallout come January.
Bernardo de La Paz
(49,045 posts)Bernardo de La Paz
(49,045 posts)cstanleytech
(26,320 posts)back its debt? Well.................now we know why so many red states are welfare queen states as they are being run by moronic Republicans.
stopbush
(24,396 posts)marble falls
(57,270 posts)our biggest international note buyer to stop carrying our debts?
Stuart G
(38,449 posts)Progressive Jones
(6,011 posts)PoindexterOglethorpe
(25,902 posts)Plus, China only owns about 5% of our debt. They're hardly the gorilla in the living room.
AllaN01Bear
(18,443 posts)if a dem were to do this , ohm myy the flack.
bucolic_frolic
(43,311 posts)China would DUMP our US Govt Bonds. They would refuse to ship us goods we need to live and for our manufacture. We depend on parts, materials, partially finished goods, and much more. You want to collapse US finance and manufacture? Proceed, by all means.
Progressive Jones
(6,011 posts)I wish very bad things upon those who sold us out. Very horrific things.
Scalded Nun
(1,240 posts)Does not have any understanding of the Constitution.
Always looking for someone to fuck over.
Oh yeah, and dumber than a box of rocks.
cstanleytech
(26,320 posts)a higher IQ than her but not by much.
Of course compared to Clorox Donald she is a bright shiny penny.
Stuart G
(38,449 posts)Trump knows the show, he has been there & done that....
The United States of American cannot, will not declare bankruptcy...
cstanleytech
(26,320 posts)household cleaners injected or ingested could kill the coronavirus if someone was infected.
progree
(10,920 posts)on the national debt.
mpcamb
(2,878 posts)pazzyanne
(6,558 posts)and she is not good at that. She certainly does not understand the world wide ramifications of what she proposed. That could start world war III in addition to sliding us into a world wide recession. Brilliant, I tell you - NOT.
gibraltar72
(7,512 posts)Vinca
(50,310 posts)that was a bad idea. In any case, how on earth does Dear Leader expect to have the greatest trade deal in the history of mankind if he stiffs China on the debt?
progree
(10,920 posts)https://www.treasurydirect.gov/NP/debt/search?startMonth=9&startDay=30&startYear=2019&endMonth=&endDay=&endYear
The top 8 holders in February 2020 are (the link shows the top 40 or so):
http://ticdata.treasury.gov/Publish/mfh.txt
Japan 1268.3 B$ (that's 1.2683 Trillion $)
China, Mainland: 1092.3 B$
United Kingdom: 403.2 B$
Brazil 285.9
Ireland 282.7
Luxembourg 260.8
Hong Kong 249.8
Switzerland 243.7
(Keep in mind Americans also own a lot of foreign countries' debt)
Response to progree (Reply #18)
Stuart G This message was self-deleted by its author.
progree
(10,920 posts)owners, and if we defaulted on a portion of the foreign-owned debt, the market value of the treasuries held by everyone and our pension funds etc. etc. would crash, and it would not any longer be considered the safest investment in the world. (And that stupid senator is not the first to suggest not meeting our debt obligations -- Trump did too back early on suggesting he would use our leverage to negotiate lower payments on the national debt).
And yes, the Social Security Trust Fund is a big holder of U.S. Treasury securities, about $2.9 trillion (their holdings are special issue non-marketable securities, so I don't think that Social Security would be negatively impacted, not directly anyway, although the U.S. general fund's ability to redeem those SSTF securities would be impacted -- beginning in 2021, yes, next year, Social Security will need to start redeeming these securities in order to pay promised benefits in full. The money to redeem these securities will come from the general fund, whose main source of revenue by far is income taxes).
https://www.ssa.gov/oact/TRSUM/index.html
https://www.ssa.gov/oact/ProgData/specialissues.html
Details on how the interest rates are set on SSTF securities. This is from 1999, but I don't think the basics have changed:
http://www.ssa.gov/OACT/NOTES/note142.html
Raven
(13,900 posts)ashredux
(2,609 posts)She is plain ignorant...our debt is the BEST there is In the world. This would destroy our ability to issues new debt and will cost us untold amounts on future bond issues.
IDIOTS
Stuart G
(38,449 posts)will not take in such a stupid lady. We have certain standards. This lady is way lower than us..She is without a doubt a member of the ....Very stupid dumb fuck idiot association of which we have nothing to do with
...
That organization has taken in Pence and other "dumb fuck idiots"..that I cannot name at this moment..
samsingh
(17,601 posts)do it. i dare you to show you're not playing politices.
see what happens to the stock market then
Stuart G
(38,449 posts)Trenzalore
(2,331 posts)Probably a few wars as well.
roamer65
(36,747 posts)flibbitygiblets
(7,220 posts)F-ing imbecile.
dalton99a
(81,599 posts)Stuart G
(38,449 posts)then there is even ...........MORE STUPID THAN THE FIRST STUPID!!!!
This "stupid lady" can't figure out s**t..So she can't clean toilets ..
Yes, I think she can figure out how to wash dishes..OK?
ramapo
(4,589 posts)Simply insane
SCantiGOP
(13,874 posts)Otherwise, its the republicans fault.
Historic NY
(37,453 posts)would that be smart, I'm sure they could sink the dollar, besides we get most of our crap from them. Donald is so determined to raise the tariffs on Chinese goods coming here that its not the Chinese paying its the taxpayer, in the rising cost of items.