Re:United States loses AAA credit rating from S&P
by thematt on Friday August 05, 2011 @09:09PM
(#2852518)
They would do that without hesitation. The problem (at the moment) is they have nowhere else to put that much money.
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Re:United States loses AAA credit rating from S&P
by TomOfTTB on Friday August 05, 2011 @09:17PM
(#2852539)
Its really not. If what you say was true they wouldn't still be actively buying U.S. Debt.
Their hesitation is they wouldn't get all their money back. If China pulled even 25% of its investments out of the U.S. the dollar would free fall. They wouldn't be able to cash out before most of the dollars value was inflated away.
China continues to buy our debt because they don't want the value of their current investment to collapse
Re:United States loses AAA credit rating from S&P
by johnny22 on Friday August 05, 2011 @10:24PM
(#2852722)
that's not the only reason, they also need to keep buying it for as long as we're a sizable portion of their export market. We still are, for now..