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IPFS News Link • Economy - Economics USA

Analysis: What is Plan B if China dumps its U.S. debt?

• Reuters

When borrowing money it's always good to have a Plan B in case a big creditor pulls the plug. That should be true whether the sum is a few thousand dollars or about a trillion, the size of the United States government's debt to China.

With Chinese President Hu Jintao due to arrive in Washington on Tuesday, it is worth asking about U.S. officials' Plan B just in case one day relations take a surprise turn for the worse and Beijing dumps its holdings of U.S. treasuries.

1 Comments in Response to

Comment by Olde Reb
Entered on:

    I believe the T-securities held by foreign nations are, in greater part, a form that can only be sold to the U.S. government.  If China wants to sell too many too fast, the US government could repudiate the debt ??