"If the U.S. attacks Syria, Russia and China probably will not take immediate military action against us. But they could choose to hit us where it really hurts. According to the U.S. Treasury, foreigners now hold approximately 5.6 trillion dollars of our debt. Over the past couple of decades, the proportion of our debt owned by foreigners has grown tremendously, and today we very heavily depend on nations such as China to buy our debt. At this point, China owns approximately 1.275 trillion dollars of our debt, and Russia owns approximately 138 billion dollars of our debt. So what would happen if China, Russia and other foreign buyers of our debt all of a sudden quit purchasing our debt and instead started dumping the debt that they already own back on to the market? In a word, it would be disastrous."
Posted on: Sat, 07 Sep 2013 16:06:18 +0000