[The Truth]

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I don't really see how China's economy would 'be destroyed' if they stopped receiving increasingly worthless debt chitties from The US in payment for their exports.


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You are right but for the wrong reasons. Japan is China's major trading partner followed by the EU then the USA. If you think it would't damage their economy severely you are mistaken but these days it likely would not cause a total financial collapse.

Jimbo

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I don't understand why they would lose the US as a trading partner. It seems to me that the amount of imports to the US would just decrease, and the US would have to find a way to pay with something other than IOUs, no?

I mean, the US wont just default on the loan. The US will "pay" it back in heavily deflated currency. China made a bad investment. They will keep exporting to the US at an amount that the US can afford.

China just made a bad invesment and it will hurt bad. I just think going they way they are now is more damaging to their economy long term than stopping.