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Us Will Never Default, Vice-President Biden Tells China

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http://www.bbc.co.uk/news/world-asia-pacific-14605974

United States Vice-President Joe Biden, who is visiting China, has said the US would never default on its debt.

In a speech on the last day of his visit, he reiterated that China's large holdings of dollar assets were safe.

His trip comes amid mounting tension between the two over America's debt.

Chinese officials have criticised the political row in the US over raising its borrowing ceiling, and expressed concern over the recent downgrade of the country's credit rating.

"You're safe," Mr Biden told university students in the south-western town of Chengdua, in answer to a question about Washington's ability to repay its debt.

"Please understand that no-one cares more about this than we do, since Americans own 87% of all our financial assets."

"We have an overarching interest in protecting the investment, while the United States has never defaulted and never will default."

Doesn't he mean the Fed?

I'm sure the Chinese will be relieved after this speech...

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Doesn't he mean the Fed?

I'm not at all sure who he means... but, I guess, it would be a reasonable time to ask for a breakdown of who holds US debt. I'd always assumed that China had a big chunk... but, it seems, their assets amount to less than 13% of the debts - perhaps much less...

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I'm not at all sure who he means... but, I guess, it would be a reasonable time to ask for a breakdown of who holds US debt. I'd always assumed that China had a big chunk... but, it seems, their assets amount to less than 13% of the debts - perhaps much less...

Also if that's the case why the Chinese really give a toss? Unless a tiny percentage amounts to a substantial amount of Chinese perceived wealth.

http://upload.wikimedia.org/wikipedia/commons/1/17/Estimated_ownership_of_treasury_securities_by_year.gif

http://en.wikipedia.org/wiki/United_States_public_debt

Several year out of date, if it's the Fed they must have bought up a lot of debt.

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Fact that Biden is even giving these reassurances is significant. A decade ago it would have been more or less unthinkable.

Right.

To me this sounds like a strong indicator the US will indeed default :ph34r:

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Fact that Biden is even giving these reassurances is significant. A decade ago it would have been more or less unthinkable.

But 10 years ago these sorts of reassurances wouldn't have been needed? 10 years everything was great.

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The question is not did they laugh at him but how long did it take them to stop?.

Not sure if you are explicitly referring to this where Geithner was laughed at.

I found this very interesting as you can imagine that Chinese people are much more disciplined about laughing in the face of officials, yet clearly they could not help themselves, so ridiculous was the statement.

If the US went to war with Iraq for billions of dollars of oil, at what point do you just roll over and let someone default on trillions? Edit: maybe they aren't owed that much - still they must be pretty annoyed....

Edited by bmf

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"Please understand that no-one cares more about this than we do, since Americans own 87% of all our financial assets."

So he's saying in their weird accounting world debt is an asset?

The chinese probably whispered to themselves "he's a confidence trickster".

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Also if that's the case why the Chinese really give a toss? Unless a tiny percentage amounts to a substantial amount of Chinese perceived wealth.

http://upload.wikimedia.org/wikipedia/commons/1/17/Estimated_ownership_of_treasury_securities_by_year.gif

http://en.wikipedia.org/wiki/United_States_public_debt

Several year out of date, if it's the Fed they must have bought up a lot of debt.

because 13% of $14.5 trillion is a lot of money in anyones book...

the biggest owners of US debt of course are americans, so theyd also default on themselves. that would cause chaos in their own economy. you cant also pick and choose who you default on because bonds are freely traded in the open market. youd need to default on everyone not just a certain group i.e foreigners.

also the US would default on its own people i.e wages, social security etc.., before it would default on bondholders.

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  • 276 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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