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What happens to a country when another country has

Discussion in 'Other Off Topic Forum' started by 62 250 GTO, Feb 21, 2009.

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  1. 62 250 GTO

    62 250 GTO F1 Veteran

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    #1 62 250 GTO, Feb 21, 2009
    hundreds of billions of it's treasury notes and cashes them in? After all of the job losses, economic tailspins, what happens?

    Say a small country of a couple of million rack up a debt of 1 trillion, do the just languish at the bottom for the barrel with a valueless currency?
     
  2. BigDog

    BigDog Formula 3

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    #2 BigDog, Feb 21, 2009
    we might find out soon enough... good ol China and USA :)
     
  3. 62 250 GTO

    62 250 GTO F1 Veteran

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    #3 62 250 GTO, Feb 21, 2009
    No political jabs now fella!
     
  4. AustinMartin

    AustinMartin F1 Veteran

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    #4 AustinMartin, Feb 21, 2009
    Actually this happened. $500 billion was withdrawn in an hour out of US money market accounts. The government stopped all accounts before anything else was done. They believe that most of the accounts were from Russia.
     
  5. 288gt-uh-oh

    288gt-uh-oh Karting

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    #5 288gt-uh-oh, Feb 21, 2009
    Last edited: Feb 21, 2009
    Chimerica. China pegs their currency to the dollar. Dollar goes down, and so does China's. They cash in all their bonds, and down they go as well. Their economy is going down right now, just like ours.

    edit: nevermind about the peg...it would be financial suicide for China to cash out all of a sudden
     
  6. 62 250 GTO

    62 250 GTO F1 Veteran

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    #6 62 250 GTO, Feb 22, 2009
    China has nearly one trillion, from what I've heard on the news etc. If China cashes in tomorrow, what happens to the States? Say China had 50 trillion, what would happen?
     
  7. agup48

    agup48 Two Time F1 World Champ

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    #7 agup48, Feb 22, 2009
    The thread gets moved to Politics and Religion ;)
     
  8. Blackbird4life

    Blackbird4life Formula 3

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    #8 Blackbird4life, Feb 22, 2009
    Before it does....I posted!
     
  9. 62 250 GTO

    62 250 GTO F1 Veteran

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    #9 62 250 GTO, Feb 22, 2009
    No one knows?
     
  10. DrStranglove

    DrStranglove FChat Assassin
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    #10 DrStranglove, Feb 22, 2009
    Oh, we do, but you have to join to find out!
     
  11. 62 250 GTO

    62 250 GTO F1 Veteran

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    #11 62 250 GTO, Feb 22, 2009
    I've already found out, I called my uncle as soon as I posted my last reply.
     
  12. DrStranglove

    DrStranglove FChat Assassin
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    #12 DrStranglove, Feb 22, 2009
    As I under stand the workings of it, there are time periods for which you can cash them in with about 500m being the limit. I am pretty sure the fed would know it if a lot was going out at once and then close down the market.

    However! If China really want to see the US turn to Fascism, they might try it. But a fascist USA would be a very dangerous creature to be sure for anyone that was not already an American.
     
  13. tundraphile

    tundraphile F1 Veteran

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    #13 tundraphile, Feb 22, 2009
  14. SrfCity

    SrfCity F1 World Champ

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    #14 SrfCity, Feb 22, 2009
    Last edited: Feb 22, 2009
    A lot is controlled by the Federal Reserve, a private entity that is owned by the likes of the Rothschild's and Bank of England. The Federal Reserve is no more Federal then Federal Express. They control the money supply for example and can manipulate so that if an entity were to withdraw a huge amount they'd be able to lessen the blow. I've read that they've got it set up to where money is only created when it is borrowed. So when you borrow $300K for a house that money didn't exist before. To create more money for the Government they don't physically print it but add zero's to the computer. Not a bad gig. Now, if they decide they're going to tank the US(more than they currently are) then look out because they pull the strings. The Rothschild gang make money when things are down because they're buying at fire sale prices when things are up they're selling. The bailouts are all about taking your money and lending it back to you with interest.
     

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