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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?


To: Elroy Jetson who wrote (115593)1/15/2016 11:45:44 PM
From: TobagoJack  Read Replies (1) | Respond to of 219928
 
China foreign debt is 1.5 trillion and is not an issue, and certainly not a problem

Given size of the economy, volume of trade, can be considered a working capital loan, nothing more

Team USA helped much to make global oil cheap, a true gift even if roiling everything everywhere, but making the China foreign debt simply inconsequential

All USA debt is denominated in USD, but much of it foreign held, meaning represents a net leak even if at 0.01% yield, and as global recirculating usd drops due to end of petrol dollar, the need for usd holding drops, and ability to place usd debt drops.

The level of debt matters, but much more importantly, the ability to place more debt matters more, especially when social contracts demand placement of 125 trillion of debt.