The U.S. is currently trillions in debt to foreign countries like China and Russia. What if those debts were called in? How would the U.S. repay those debts?
Those debts won't get paid back. The US will do what Latin American countries have done throughout the 20the century. They'll just repudiate the debt and tell the owners of the debt: tough luck.
The criminals in Washington hope that the threat of this is enough to keep China and Russia from calling their debt and/or interfering with "US interests" abroad. I'm not so sure that will work.
I dunno, the Chinese are getting mighty arrogant these days because they are the new economic super power. Last I heard, their trade minister was strong-arming technology firms into giving up trade secrets in order to access China's trade market.
I'm really not too keen on seeing Chinese warships on their way to U.S. soil to reposess a few coastal states as payment for the debt the U.S. owes them. ;-)
A good article from the wall street journal:
http://online.wsj.com/article/SB2000142 … 80940.html
You don't have to worry about that, the Chinese navy is a joke. They can't even use it to compel Taiwan to do anything much less use it to support amphibious landings against the US. The very idea that anyone might try that is so ludicrous that I can't even entertain the thought.
To give you an example, the US has 11 Carrier Strike Groups. That is a carrier and all it's supporting warships. The British Navy has a Carrier Task Force, which isn't even in the same league as a CSG. The French, Italians and Spanish each have a Carrier Battle Group which is analogous to the British Task Force.
India has a light carrier battle group, which wouldn't last five minutes against a CSG. The Russians have a single carrier which, while more heavily armed than a US carrier, doesn't have near the support the USN CSG has.
China has no current carriers but it would seem that they have one nuclear powered bought from Russia and two conventionally powered under construction. It would seem that they are also taking a page out of Germany's playbook and investing in submarines. With the technological head start the US had and decades of experience against the Russians, Germans and Japanese, it will be some time before the PRAN can threaten the US. Besides it's not like they can use their navy to starve us out like the British did to the Germans in WW II, we export food, we don't import it. Aside from Special Ops, subs can't really support amphibious landings.
Plus there aren't enough soldiers in the Chinese army to garrison the US. Which is what it would take, or do you think we'd just hand over the West Coast, Hawaii and Alaska?
No the Chinese will most likely use diplomacy or gingerly use their economic levers to get what they want.
You make some excellent points. However, it would be funny to see how far the Chinese would go to get their way.
The Chinese navy is becoming a bit more than a joke, it is increasing in size and ability about at the same rate as the economy. Also, as ex-navy man myself, they are gaining experience and getting practice by getting involved in the trouble spots around the world, patrolling against piracy etc.
The air force is the same, there were reports of no determinate age of a foreign power over-flying Chinese coastal regions and China stopping it by downing one of the fighter planes. I don't know anything about this officially, just what I heard and that could have just been a story. But they were overflying China - and they did stop.
The strategic issue is that the Chinese forces appear to only consider fighting here, carriers are for fighting away from home; my friends who are in the army only talk about defence. It would be my opinion that they do not even look outside their own territory, their idea of their own territory, when considering armed force. I think California is safe for now.
I'm not sure how they would, but it sure wouldn't be a military option. I just don't see how they can compel Washington to not repudiate the debt if pressed too hard. About the only thing they can do is refuse to buy any more debt, which is what I think will happen soon. Then the government will be forced to print money and it'll be like the Confederacy near the end of the War Between the States.
by Jay Louidor6 years ago
What is your opinion on America's debt to foreign countries?
by Toni Northern4 years ago
I get a lot of people from all over the world saying America ruined their culture. We ruin their youth with our influences etc... American businesses have been established in other countries and I know we didn't just...
by Julianna9 years ago
Any ideas as Americans on how we should take back our Country? How much money did we borrow from China? Why are we borrowing at all? Outsourcing is horrible especially when it takes from the U.S. Citizens how do we as a...
by Ralph Deeds4 years ago
Economists Agree: Solutions Are ElusiveBy EDUARDO PORTERPublished: April 23, 2013 "Last week the International Monetary Fund hosted a conference of some of the world’s top macroeconomists to assess...
by rhamson8 years ago
For years the US has been setting up businesses in China and trading at a deficiet for the last few. China has accepted our credit and continued to loan us money to carry on wars and other policy while the debt...
by ThunderKeys6 years ago
Is there anyone reading who can explain the global economic crisis simply and objectively in just a few paragraphs? When I try to find information to understand what's going on with the Euro and with the US economy,...
Copyright © 2018 HubPages Inc. and respective owners.
Other product and company names shown may be trademarks of their respective owners.
HubPages® is a registered Service Mark of HubPages, Inc.
HubPages and Hubbers (authors) may earn revenue on this page based on affiliate relationships and advertisements with partners including Amazon, Google, and others.