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To: Steve Lokness who wrote (293)6/26/2012 12:32:10 PM
From: Chris08  Read Replies (1) | Respond to of 513
 
Hmmm....no, The US can always pay off China with dollars and can create as many as needed to do so. If China thinks it is getting devalued dollars, that is its problem. I read extensively about economics every day and you should too. I have never seen any concerns about the debt owed to China. Spain and Greece do not control their own currency and cannot create Euros at will. That is why they are in a very different situation from the US. People seem not to understand this. I do think the US should reduce its yearly deficits and should do so by raising taxes, particularly on the richest 1% or 5%.



To: Steve Lokness who wrote (293)6/26/2012 12:41:48 PM
From: Robohogs  Respond to of 513
 
And instead of TWISTing we should be extending maturities. Average maturity is in mid single digits of years. With new funding requirements, we issue some huge percentage of existing debt each year - think 25-30%. Higher interest would hit quickly.