reply to ShillsAreSocialToo
My friend you are wrong on a pair of points: First In finance, a bond is a debt security, in which the authorized issuer owes the holders a debt and, depending on the terms of the bond, is obliged to pay interest (the coupon) to use and/or to repay the principal at a later date, termed maturity. A bond is a formal contract to repay borrowed money with interest at fixed intervals (semi annual, annual, sometimes monthly). So if China or me or any buy a US bond the h the holder of the bond is the lender (creditor), the issuer of the bond is the borrower (debtor), and the coupon is the interest. That it means that USA owe me or China or any other buyer. (look on Wikipedia if ou do not believe me).
Second China /Other countries and USA: America have no more the industrial capacity of before There are a lot of ware that are no more produced in America (easy examples: cellphones, industrial electric tranformers ) So you can forget to import them from China or any other countries if USA default on bonds.
Third USA infrastructure is going down (ask what engineer associations are saying or look around) and there is no money for it and I do not see how you can forecast ???money to create alternate infrastructure???
