- Thread starter
- #81
I think it does fit in the topic though, Claire. No apology necessary.One positive factor regarding calling in the debt is that China bought up a lot of the US debt in treasury notes so that’s a good preventative because CCP would take a major loss if they ever decide to call in the debt. Another preventative, US consumers are CCP’s largest foreign customer base.
The most ridiculous thing is the prescription drug situation all these drugs manufactured in China. Sorry Foxfyre I know that’s outside of the OP topic, but still worth noting here.
The following chart I think has changed a bit and China holds roughly 20% of foreign held U.S. debt, a dangerous thing if they should decide to call in the money. Proverbial Fort Knox is empty except for 30 trillion IOUs and having to print so much money to pay such a debt could so weaken the dollar inflation would become a crisis, not just a problem. I think 10 states have laws forbidding foreign ownership of land. China owns only a very small percentage of real estate compared to all the foreign owned land but seems to be stepping up acquisitions.
And yes, because China exports to us 80% of the ingredients used to manufacture pharmaceuticals, we have a really dangerous situation there. Not to mention they pretty much have an iron grip on critical components that go into electric car batteries and they manufacture the lion's share of the batteries.
All this puts us in a bad position re getting tough with China. While their economy depends heavily on trade with us, we have allowed them the power to literally cripple us should they choose to do so.