if they stop loaning, we stop borrowing, we stop spending, they stop selling. End result, if they stop loaning us money to buy stuff then they won't be able to sell us stuff because we won't be able to buy it.
us govt stops borrowing and looks inward for income...taxes go up.
taxes go up.....little guy spends less on stuff he doesn't need.
little guy spends less on cheaply made chinese goods.....manufacturer of cheaply made chinese goods loses money.
manufacturer of cheaply made chinese goods loses money...chinese govt loses money.
pretty simple really
Topic: America is the debt slave of China and Japan - page 2. (Read 1919 times)
they'll stop loaning the money when Americans stop shopping at Wal-Mart. As long as we buy thier imports they'll loan us the money because thier govt can control thier rate of growth in thier favor (cool thing about single party dominance).
they can stop loaning anytime they want, they are basically holding a sword over americas head.
they'll stop loaning the money when Americans stop shopping at Wal-Mart. As long as we buy thier imports they'll loan us the money because thier govt can control thier rate of growth in thier favor (cool thing about single party dominance).
http://www.bea.gov/newsreleases/international/intinv/intinvnewsrelease.htm
"The U.S. net international investment position at the end of the second quarter of 2014 was -$5,445.1 billion (preliminary) as the value of U.S. liabilities exceeded the value of U.S. assets (chart 1, table 1)."
America owes the world 5.4 trillion USD and its only getting worse
http://www.tradingeconomics.com/united-states/balance-of-trade
"The United States recorded a trade deficit of 40546 USD Million in July of 2014."
every month America needs someone to loan it another 40 billion USD or it can't pay for its imports.
most of these loans come from China and Japan
http://www.ibtimes.com/top-10-foreign-holders-us-debt-china-japan-still-lead-1511752
this looks like a sad ending for the land of the formerly free, how long before China decides enough is enough and stops loaning the money.
"The U.S. net international investment position at the end of the second quarter of 2014 was -$5,445.1 billion (preliminary) as the value of U.S. liabilities exceeded the value of U.S. assets (chart 1, table 1)."
America owes the world 5.4 trillion USD and its only getting worse
http://www.tradingeconomics.com/united-states/balance-of-trade
"The United States recorded a trade deficit of 40546 USD Million in July of 2014."
every month America needs someone to loan it another 40 billion USD or it can't pay for its imports.
most of these loans come from China and Japan
http://www.ibtimes.com/top-10-foreign-holders-us-debt-china-japan-still-lead-1511752
this looks like a sad ending for the land of the formerly free, how long before China decides enough is enough and stops loaning the money.
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