What happens if US cannot pay it's debt

[MH.Yang]

All oil is sold in dollars hence everyone needs dollars. Is any OPEC country ready to sell their oil in Renminbi ?

Many people think that the Chinese will be happy to replace the dollar system with the CNY system as soon as possible, that is wrong.
We recognize that there are many benefits and opportunities for a currency to become an international currency, but it will also bring great dangers. Once the monetary system collapses and countless currencies return home, it will inevitably lead to the country becoming Zimbabwe.
The USA has the world's strongest army, a large number of allies and a strong economy, but it still cannot guarantee the absolute security of the dollar system. How can we Chinese ensure the safety of the CNY system? If you do not have enough strength to ensure that your currency becomes an international currency rashly, it is tantamount to economic suicide.
If the world is ready to eliminate the dollar system. Then we'd better use multiple currency systems to replace the dollar system and make multiple currencies become international currencies at the same time. Therefore, China is eager for the world to move towards a multipolar era. A variety of international currencies can make the world economy more stable, which is more in line with China's interests.

 

[SuvarnaTeja]

Many people think that the Chinese will be happy to replace the dollar system with the CNY system as soon as possible, that is wrong. We recognize that there are many benefits and opportunities for a currency to become an international currency, but it will also bring great dangers. Once the monetary system collapses and countless currencies return home, it will inevitably lead to the country becoming Zimbabwe. The United States has the world's strongest army, a large number of allies and a strong economy, but it still cannot guarantee the absolute security of the dollar system. How can we Chinese ensure the safety of the CNY system? If you do not have enough strength to ensure that your currency becomes an international currency rashly, it is tantamount to economic suicide.

China has a vested interest to keep the US dollar a the world reserve currency as that is the only way they can use their dollar earned from exporting goods to the US to buy oil and other goods from other countries. Remember US-China are part of G2.

 

[MH.Yang]

China has a vested interest to keep US dollar a the world reserve currency as that is the only way they can use their dollar earned from exporting goods to US to buy oil and other goods from other countries. Remember US-China are part of G2.

No, China is not G2. Obama put forward the G2 proposal, but China rejected it.
Politically, we have always been the member of third world countries, and we have always been an important force in the anti imperialist and anti colonial camp. The Chinese people are also full of rejection of imperialist ideas, so we will not let China join the imperialist camp.
Economically, China is a supporter and beneficiary of global economic integration. One pole or two pole world is not the most suitable environment for global economic integration. A multipolar world is the one that best serves our economic interests.
We do not support the dollar system, but now is still not the right time to destroy the dollar system. Because now we have only the ability to destroy, not the ability to find a better alternative.

 

[SuvarnaTeja]

No, China is not G2. Obama put forward the G2 proposal, but China rejected it.
Politically, we have always been the member of third world countries, and we have always been an important force in the anti imperialist and anti colonial camp. The Chinese people are also full of rejection of imperialist ideas, so we will not let China join the imperialist camp.
Economically, China is a supporter and beneficiary of global economic integration. One pole or two pole world is not the most suitable environment for global economic integration. A multipolar world is the one that best serves our economic interests.
We do not support the dollar system, but now is still not the right time to destroy the dollar system. Because now we have only the ability to destroy, not the ability to find a better alternative.

China & US have been partners against the Soviets/Russia for more than half a century. Rejection of G2 is just a eye wash. No one believes that. Both US and China have been cooperating. COVID virus itself is a joint venture between China and US. China back stabbed Soviets in the past and is back stabbing Russia now. China is just waiting for Russia to lose the war with Ukraine to annex Eastern Russia.

NIH DOCUMENTS PROVIDE NEW EVIDENCE U.S. FUNDED GAIN-OF-FUNCTION RESEARCH IN WUHAN

NIH Documents Provide New Evidence U.S. Funded Gain-of-Function Research in Wuhan

The National Institutes of Health-funded experiment in Wuhan, China, posed biosafety risks but did not cause the Covid-19 pandemic, scientists say.

theintercept.com

 

[MH.Yang]

China & US have been partners against the Soviets/Russia for more than half a century. Rejection of G2 is just a eye wash. No one believes that. Both US and China have been cooperating. COVID virus itself is a joint venture between China and US. China back stabbed Soviets in the past and is back stabbing Russia now. China is just waiting for Russia to lose the war with Ukraine to annex Eastern Russia.

NIH DOCUMENTS PROVIDE NEW EVIDENCE U.S. FUNDED GAIN-OF-FUNCTION RESEARCH IN WUHAN

NIH Documents Provide New Evidence U.S. Funded Gain-of-Function Research in Wuhan

The National Institutes of Health-funded experiment in Wuhan, China, posed biosafety risks but did not cause the Covid-19 pandemic, scientists say.

theintercept.com

We did cooperate with the USA against the USSR. But we did not betray the USSR. It was the USSR that first broke off diplomatic relations with China and the USSR that betrayed China.
The USSR perished, the USA betrayed China in 1989, and the CIA incited riots in China. Now China and Russia are allies. We cooperate against the USA.

About Siberia, don't you know that China is facing a population problem now? The population of Northeast China is growing negatively. Even if we get Siberia, what do we use to occupy it? We have no population.

 

[SuvarnaTeja]

We did cooperate with the USA against the USSR. But we did not betray the USSR. It was the USSR that first broke off diplomatic relations with China and the USSR that betrayed China.
The USSR perished, the USA betrayed China in 1989, and the CIA incited riots in China. Now China and Russia are allies. We cooperate against the USA.

About Siberia, don't you know that China is facing a population problem now? The population of Northeast China is growing negatively. Even if we get Siberia, what do we use to occupy it? We have no population.

US and West have always been partners of China. China crushed Tiananmen square protesters, falun gong, uyghur, Hong Kong and the list goes on and what did US or West do? Nothing. They just give a free pass or at best put some useless sanctions that no one knows what they mean. Heck US & West are not even willing to Boycott Chinese Olympics. nuff said. No one is going to fall for this fake US-China fight. China will annex both Eastern Russia and Central Asia republics as soon as Russia collapses after losing the war to Ukraine.

 

[MH.Yang]

US and West have always been partners of China. China crushed Tiananmen square protesters, falun gong, uyghur, Hong Kong and the list goes on and what did US or West do? Nothing. They just give a free pass or at best put some useless sanctions that no one knows what they mean. Heck US & West are not even willing to Boycott Chinese Olympics. nuff said. No one is going to fall for this fake US-China fight. China will annex both Eastern Russia and Central Asia republics as soon as Russia collapses after losing the war to Ukraine.

Useless sanctions? China was on the verge of collapse!
The Yinhe incident in 1993, the US bombing of the Chinese Embassy in the Federal Republic of Yugoslavia in 1999, and so on, we have endured too much humiliation and provocation.
It was the second Gulf War and the war in Afghanistan that gave us a chance to breathe.

 

[Chhatrapati]

the rating that USA gave itself.
USA already can't pay its debt . they just print n=more money and push the consequence of their overextravagant to the rest of the world.

That's because they can. USD is the largest currency in circulation in international trade. Which again comes back to the trust in US economy and USD for international organizations and governments.

As for the ratings, you can look at Chinese credit agencies who gave a similar rating to the US, if you don't trust US agencies. The point is the same.

They said this about Argentina. That's why all the nazis went there.
Eventually you have to repay your debt.
Have you forgotten the scandal involving credit rating agencies like moody not so long ago. They were not checking anything nd giving ratings willy nilly. America is a big lie.

Argentina already had structural issues and it still has. Not to mention their form of government for a while was dictatorship and later persued pointless wars to no avail. Argentina is corrupt and failed to manage their economy and runs from IMF bailouts to the next. It's not a country I would compare to the US as an example.

Scandals involving credit agencies back in 2008 didn't erode their credibility. International lenders and institutions still rely on these agencies and their ratings.

America may be a big lie but it's a pretty convincing one.

 

[SuvarnaTeja]

Useless sanctions? China was on the verge of collapse!
The Yinhe incident in 1993, the US bombing of the Chinese Embassy in the Federal Republic of Yugoslavia in 1999, and so on, we have endured too much humiliation and provocation.
It was the second Gulf War and the war in Afghanistan that gave us a chance to breathe.

The NATO war with Serbia was against Russia not China. That Chinese Embassy bombing is just a red herring and side show. Yes useless sanctions which did not prevent anything but increased US outsourcing to Chinese to make China the richest country comparable to the US at the expense of countries like ASEAN and Japan. China is working with the US and Turkey to build the Istanbul canal to destroy Montreux Convention which restricts NATO warships into Black sea through Dardanelles and Bosphorus straits to confront Russia.

China and the Istanbul Canal

China and the Istanbul Canal | Ahval

This article will analyze China’s motivation for serving as the main foreign investor for the Istanbul Canal project by looking at the risks and benefits of such an undertaking in the context of China’s overall relations with Turkey and its broader global economic strategy, which is now well...

ahvalnews.com

 

[MH.Yang]

The NATO war with Serbia was against Russia not China. That Chinese Embassy bombing is just a red herring and side show. Yes useless sanctions which did not prevent anything but increased US outsourcing to Chinese to make China the richest country comparable to the US at the expense of countries like ASEAN and Japan. China is working with the US and Turkey to build the Istanbul canal to destroy Montreux Convention which restricts NATO warships into Black sea through Dardanelles and Bosphorus straits to confront Russia.

China and the Istanbul Canal

China and the Istanbul Canal | Ahval

This article will analyze China’s motivation for serving as the main foreign investor for the Istanbul Canal project by looking at the risks and benefits of such an undertaking in the context of China’s overall relations with Turkey and its broader global economic strategy, which is now well...

ahvalnews.com

First of all, the investment to promote China's economic development mainly comes from Hong Kong, Taiwan, Japan and South Korea, not the USA. Secondly, Turkey did get some loans from China for the Istanbul canal project, but it is a business. Even China's refusal to lend will not stop the project. China never mind that Russia sells so many weapons to India. Why? Because even if Russia does not sell to India, other countries will sell to India.

 

[SuvarnaTeja]

First of all, the investment to promote China's economic development mainly comes from Hong Kong, Taiwan, Japan and South Korea, not the USA. Secondly, Turkey did get some loans from China for the Istanbul canal project, but it is a business. Even China's refusal to lend will not stop the project. China never mind that Russia sells so many weapons to India. Why? Because even if Russia does not sell to India, other countries will sell to India.

Don't project your weakness as a virtue. China tried her best to stop S-400 sale to India but miserably failed. Russia will always sell equipment to India. Russia knows that China is in bed with the US & Turkey to weaken Russia.

 

[SABRE]

US has the luxury of printing Dollars while other countries have to earn money. US will never go Bankrupt.

[I am no economist or a monetary policy expert so what I am about to say is based on the logical of economics that learned in the uni.]

That is not how the economy and money works. If they print more dollars and increase its supply then its demand will decrease, which will decrease its value. On the other hand, if its value keeps increasing rapidly, it may trigger diminishing returns or a decline in value as well.

 

[SuvarnaTeja]

[I am no economist or a monetary policy expert so what I am about to say is based on the logical of economics that learned in the uni.]

That is not how the economy and money works. If they print more dollars and increase its supply then its demand will decrease, which will decrease its value. On the other hand, if its value keeps increasing rapidly, it may trigger diminishing returns or a decline in value as well.

That is only applicable to all currencies except the US dollar. US dollar is the World reserve currency. Whenever US prints more dollars, all other countries print more of their currencies in tandem to keep the exchange rates stable and to ensure their exports are not adversely impacted.

 

[SuvarnaTeja]

First of all, the investment to promote China's economic development mainly comes from Hong Kong, Taiwan, Japan and South Korea, not the USA. Secondly, Turkey did get some loans from China for the Istanbul canal project, but it is a business. Even China's refusal to lend will not stop the project. China never mind that Russia sells so many weapons to India. Why? Because even if Russia does not sell to India, other countries will sell to India.

Everyone knows that US investments are being routed through Hong Kong, Taiwan, Japan and South Korea. That is why I say US sanctions on China are just smoke and mirrors.

 

[MH.Yang]

Don't project your weakness as a virtue. China tried her best to stop S-400 sale to India but miserably failed. Russia will always sell equipment to India. Russia knows that China is in bed with the US & Turkey to weaken Russia.

China did not prevent Russia from selling the S400, and China will not join hands with the USA to destroy Russia. If China wants to destroy Russia, it only needs to cooperate with NATO sanctions against Russia in 2013, but China did not. China filled the shelves of Russian supermarkets with goods and gave Russia such a contract when Russia was in the most critical situation.

Russia, China sign 'unprecedented' $270 billion oil deal - Times of India

Europe News: Russian oil giant Rosneft and Chinese state firm CNPC signed on Friday a $270 billion deal to supply China with oil over 25 years as Russian President

m.timesofindia.com

Avertissement de redirection

China is willing to use $270 billion to buy Russian oil contracts at a fixed high price. It is this contract that gives Russia the strength to overcome sanctions.
Now do you know why Russia believes in the Chinese? Because we're giving them blood.