Talk me down. Are we borrowing $700 billion from the Chinese?

[Guava Jelly]

Um...

[jakem]

1. Know anyone else with that kind of cash?

[Guava Jelly]

3. ...

fuck....

[TheBigotBasher]

20. My post my add some food for thought

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=132&topic_id=7143432&mesg_id=7145665

[Motown_Johnny]

7. Everyone we buy oil from???

[jakem]

9. well. ok... now that you mention it...

pretty much anyone we do trade with has more money than we do!

:(

[TheKentuckian]

2. Yeah, maybe the Saudis will kick in some too

[Motown_Johnny]

4. 700 billion, sure.. and the Iraq war will pay for itself... more like 1.5 trillion to start with

[El Supremo]

5. No we're just printing it.

[jakem]

11. Quick!!! INVEST IN INK FUTURES!!!

:woohoo:

[NYC_SKP]

21. And blank currency paper stock!!! nt

[AlCzervik]

6. Well we don't have it in house and since they already finance the war what's another

trillion or so?

[Guava Jelly]

8. Gah!!

I feel violated..:yoiks:

[AlCzervik]

13. we're ya been man, they've been propping us up for quite some time now.

[Guava Jelly]

14. I've seen it..I was just hoping that i was wrong.

sigh..

[AlCzervik]

15. sorry, i hate that you're correct but you just are.

[WinkyDink]

23. AKA: CHINA OWNS US.

[AlCzervik]

26. "We call it master and servant"

Depeche mode never fails.

[Life Long Dem]

12. And Obama needs to get the taxes from the same greedy ones and have them pay for it

[bigwillq]

10. According to Pat Buchanan, we should.

:eyes:

[Guava Jelly]

16. Pat doesn't even believe it.

These guys are running out of lies.

[nutshell2002]

17. I thought we were just printing more $$ n/t

[Sensitivity]

18. In the final analysis that is what it amounts to -- Biggest buyers of treasury notes

[Avalux]

19. Can't talk you down. YES.

We don't have any saved and we can't print that much. It's either the Chinese or gutting Social Security! Take your pick!

x(

[Guava Jelly]

22. ...

Either option make me want to :cry:

[Avalux]

24. I hear ya.

I am angry and sad at the same time. Horrible feeling. :cry:

[Statistical]

25. Kind ironic that we are 9.7 trillion in debt and most people don't know how we finance debt

1) We don't just "print more money". Doing so would lead to massive inflation. I am not talking the 5% that people say is massive I am talking like $100 is worth $1 kind of inflation. No 1st world country since WW II tries to handle their budget by just printing more money.

2) We don't sell to China. China doesn't have a special deal or something. We sell our debt to the highest bidder. China buys a lot because it secures their currency.

3) When US spends more than it has (like 22 of last 24 years) the Treasury sells Treasury Bonds. They acution them about once a quarter. You me, your, brother Frank can all participate. So can corporations, and foriegn govt.

4) The interest rate depends on supply & demand. The Treausry offers bonds at a rate slightly below what they think all the debt can sell for. Interested parties make bids for lower and lower rates. If there is not enough demand the Treasury offers it at a higher interest rate.

5) Every year the treasury pay interest on all those bonds. Right now it adds up to about $450 Billion a year in interest.

[scarface2004]

27. jon mkane is pulling it out of his ass!!

since he s suck a big asshole!!!!

[JuniperLea]

28. I for one look forward to greeting our Chinese overlords...

Excuse me... off for my lesson in Chinese!

[EC]

29. Yeah, we're the most productive and best economy in the world

(according to repubs) but we have to borrow from China...how's that work?


On Edit: To top it off, we'll have to also buy back the bad debt from the Chinese that they bought from these banks....


Sorry, can't talk you down...:toast: how about a beer instead?

[Guava Jelly]

30. I'll take that beer