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Debt Relief – Insolvency – Bankruptcy Information » Insolvency » Should the USA Default on its Debt to China?

Should the USA Default on its Debt to China?

It was somewhere in the 1960′s with LBJ an the War on Poverty that we started to live in Libworld rather than the actual world, and that our national debt started to grow by large annual deficits.

Now the national debt is about 65% of our GDP. We are teetering on the brink of insolvency.

Here’s how we can escape. We need to tell the Chinese that all USA financial instruments that are backed by the Treasury which they hold will be paid in “trade dollars”, and no other way. Not in gold, not in silver, not in $100 bills. What they get is trade dollars.

These can only be used to buy USA Made goods, in USA which were produced by citizens of USA.

So in the end the Chinese become “Fair Traders” whether they want to be or not.

Once these trade dollars return to USA, and are in the hands of US citizens and USA corporations (not multinationals), they may be spent to buy land owned by the Federal government, or mineral rights, or oil leases, or oil from the Strategic Patroleum Reserve, or drilling rights, surplus assets held by GSA and DOD, or various privileges that can be conferred at the discretion of Uncle Sam, (including broadcast licenses, and riperiran rights, and rights of way, air rights, inland waterways rights, and access to business related intelligence).

So Americans will sell bits and pieces of America to other Americans, to be held by Americans, in America and nowhere else (not in the Seychelles, not in Bermuda, not in Switzerland).

The Chinese don’t get nothing — they get our goods and services.

We get our jobs back — which would make 100 million Americans real happy right now.

The Government gets to sell rights, privileges, and land — all of which are now lying idle, while our government tips on the brink of insolvency.

It’s a win-win-win and here’s the bonus — we can stop living in Libworld, and go back to living in the actual world, with no War on Poverty, a reasonable national debt (say 25% of GDP) and a reasonable level of debt service costs that will not require our kids and grandkids to pay 50% of their incomes just to service our national debt.

Add in a GOP House and Senate committed to IRONCLAD Pay-Go with no nonsense, and what you have is dolphin314etc remake of the world.

You say it’s impossible. Give me a place to stand (maybe by Ron Paul’s side) and I will make it happen!

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3 Responses to "Should the USA Default on its Debt to China?"

  1. raymond says:
    Lets do it, !!!!!!!!!!!!!
  2. gosam777 says:
    China owns approximately $800 billion of those securities. Japan is a close 2nd. That is out of a near $14 trillion debt. In fact, Treasury transfers and handles more securities in one day, then what China owns. Most of that is owned by American Retirement funds, and mutual funds. So you would hurt many more people, other foreign governments American investors, then you would China. If you apply it ONLY to China, that is what is called currency manipulation, and an act of war.

    Most Americans own those same securities in 401K’s. IRA, retirement funds. So you would not be able purchase any products with them, not made in America. That would include most all electronics, as well as most manufactured goods. Until American manufacturers began producing them, which could take years, you could not buy those products unless you used other cash money resources.

    It would devalue the dollar, so all foreign goods would skyrocket in price. So you would either go without, or pay much more then you are now.

    In addition, Treasury security sales would cease. No investors, foreign or domestic would buy them. The only way to operate and fund the government, would be through the Fed printing more dollars and buying them, which would result in inflation.

    China and the rest of the world would immediately drop the dollar as the standard currency. Now you are not only paying much more for everything at the store, but gasoline at the pump climbs to unprecedented prices.

  3. MadMan says:
    No. You show your lack of knowledge with this. gosam777 speaks sense.

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