Every year the world economy seems to worsen to imaginable figures only the united states the great world superpower has a debt of more than 34 trillion dollars so much money to save the economies of many countries, but that is another topic the united states owes a lot of money to china thanks to them the american economy stays afloat and china in recent years has become the factory of the world and aims to be a world power and with so much wealth the Chinese government has been distributing credits in many countries of the world practically in every continent, but how much money does the united states owe to china and what would happen if the united states one day decides not to pay china because it is no secret that their relations are not the best and they are constantly threatening each other and tensions are higher than ever and china is a strategic ally of russia and is just a hair's breadth away from invading Taiwan just looking for the perfect excuse to make their maneuvers as russia invaded ukraine although Biden has already said that if china invades Taiwan the united states will be forced to go to war with china.
but it is really convenient for the united states to enter into a conflict with china when it owes more than 1 trillion in united states government bonds because we would enter into political manipulation if the Chinese decided one day to sell the united states bonds in the financial markets this would generate a world collapse because other creditors and investors would see the price of the dollar and many currencies anchored to the dollar lose their value and would quickly sell their bonds creating a domino effect detonating a bomb to the world economy.
the united states lends itself money, but it does not do it by going to the market and asking for money, it issues bonds that serve as evidence for whoever buys them the federal reserve issues bonds that must be paid or acquired with dollars they themselves print a super rounded business that is to say if 100 million dollars are needed for public works they issue a 100 million dollar bond and sell them to the market whoever buys the bond receives interest and when the bond matures the creditor in theory should receive his money back, but what would happen if the united states decides for whatever reason not to pay china would lose confidence in the treasury bonds with the other surrounding areas and investors either way there would be a collapse of the world economy both countries are tied hand and foot.
Economics and war are like chess, everyone makes their best move to win.
@faniaviera
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