since China "owns" most of the US debt,,,what if Trump just declares that they owe us that money due to Covid19?
- Anonymous8 months agoFavorite Answer
China owns $1.1 trillion which is 5.6% of the Federal public debt, or $4.3% of the total Federal debt. Japan holds a bit more, and it's not "most". China has sold some on the global markets. We pay interest and depending upon the due dates of maturity, pay off the debt that matures and issue more bonds. Any attempt to cancel the debt would plunge the USA into a financial crises. We would lose buyers of new debt around the world, and every country would be looking to sell off their us debt. Yields would soar and would cost us much more than a trillion. We need stuff from China more than they need us. The USA is totally unprepared to re-source goods. Prices would rise on many things. We certainly can't manufacture here very quickly. Many reasons for that. The head of the World Trade Org is stepping down because of US-China relations.
The best move would be to declare Trump unfit for office if he attempted to touch the debt with China. As to a claim on money for Covid-19, what basis? Trump ignored our China agents who told Trump what was happening there. It's like Mexico will pay for the wall. He has no power over China. They don't owe us anything. He's trying to isolate the USA, not use world courts.
China only owns about 5% of US National debt. All the countries that own any US debt added together is under 40%. Majority of US national debt is owned by US companies and US citizens.
- StephenWeinsteinLv 78 months ago
We will still owe them that money even if he declares something else.
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- Anonymous8 months ago
China is the enemy of the world, but democrats love them.
- 8 months ago
China owning most of the debt is a myth