How China accumulated $28T in debt

Re:How China accumulated $28T in debt by vkou on Thursday January 28, 2016 @04:08PM (#10991357)

They can ask for whatever they want, but they won't get it. (And they won't ask.)

What they can do is start selling the debts they own for cash on the open market.

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Re:How China accumulated $28T in debt by coliveira on Thursday January 28, 2016 @09:27PM (#10993115)

You understand they use dollars to keep their currency afloat, right? If they sell all their dollars, there will nothing to stabilize their currency.

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Re:How China accumulated $28T in debt by dev1n on Thursday January 28, 2016 @04:26PM (#10991490)

and that would cause a run from the yuan, right?

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Re:How China accumulated $28T in debt by vkou on Thursday January 28, 2016 @04:40PM (#10991592)

I'm not sure - it will, however, make it more expensive for the US to sell new bonds. (Why lend Uncle Sam $100 at a 1% interest rate, when you can buy a piece of paper that says Uncle Sam will pay you $100 next year for $98 from China?)

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