@
deanhills
thanks. Those were nice points. I agree on a lot of points with you but,
I don't claim to have much knowledge in macroeconomics and all that goes with it. But This much I can say. US is not burdened by huge debt to China.
US Dollar is like todays gold standard all over the world. Countries use it as reserve. So rather it is China that is locked with the fate of US economy by that investment and US is under no pressure to repay. Actually such debts are never repayed like that if I am not too wrong.
Only Journos with not much knowledge of money flow and a wish to sensationalise everything write articles like that.
You see, even I am not clear on the dynamics of the flow. But this much is incontrovertible that US economy is quite well and under no impending doom owing to that debt to china. Rather it has huge burgaining power over china and if china tries to shake that debt down from its own shoulder, it will lose a substantial portion of its national treasury while doing that and America won't even have to blink before others cheerfully pick up those glittering gold coins (papers of debt) that china throws away to call in cash. Huge cash call in for thise papers will mean dumping those in the market. Sudden big supply means price fall. Means china loses money. But other countries happily picks up those. And US wont even roll in bed while sleeping.
I will point you to better explanatory articles by experts when I find them. promise...