Odds of China calling its US bonds if the teabaggers force us into default?

[jmowreader]

I'm betting it's close to 100 percent.

[gateley]

1. I seem to recall hearing that they need us as much as we need them,

so that wouldn't probably happen. Of course, details and facts are fuzzy, so I can't give you anything more than that.

We ARE one of their largest customers and employers, no? They'd want to keep that going.

[Rex]

2. What if that was all a lie?

We better hope that is true.

[gateley]

5. If I recall, it was a neutral financial person, not someone, say,

from the administration trying to calm fears. Rang true to me, anyway.

[Rex]

9. I've heard that from a lot of people on the TVEE.

[Kaleva]

4. Without us, their economy crashes.

[joshcryer]

7. They do. Hell, in the statement they even lamblasted *democracy* because it allowed this to...

...be an issue in the first place: http://www.reuters.com/article/2011/07/30/us-china-us-debt-idUSTRE76T0H220110730

"The voting system has restricted the White House's power to act," it said. "The farce taking place on the U.S. political stage has let the whole world know where the United States' political problems are."

They're terrified. US default is a global depression for years.

Oh and I suspect tea party fools would be strung up at the gallows but yeah.

[On the Road]

3. How Do You Call a US Government Bond?

[wtmusic]

6. If the US Government is in default, you don't.

That's kind of what "default" means.

[joshcryer]

8. You say "Hi, we have this bond that is worthless, let's sell it at half price."

Someone, either a fool or a smart investor, says "OK, I'll buy it."

Meanwhile the US dollar plummets in value, inflation explodes, and civil war erupts.