U.S. laying goundwork to "stiff" Chinese on U.S. debt.

If I borrowed $1000 from you in 1999 @ 10% when Oil was at $16.56 / brl and gold $285 /oz. Every year you get your $100 interest payment and I borrow another $1000.

Year Princple. Interest
1999 $1000 $100
2000 $2000 $200
2001 $3000 $300
...
2011 $13000 $1300

Except today Oil is $100 and gold is $1400.

What have you really gained?
And how much do you lose if I default?
 
Quote from LEAPup:

And the sad part is Odumba will be re-elected by the sheeple, and he will then enact his socialist, leftist gun control views which the dumb asses who voted for him will pay for in the long run. I've heard of people in the US learning Chinese now knowing of the impending "change" we will be getting in the coming years. If this is the "change" Odumba was talking about, I'm out. I'd rather live in the Phillipines if I can't own weapons to protect myself, my family, and the US Constitution.

The 2nd Ammendment makes all others possible. America will learn a VERY hard lesson in the years to come imo.:(
More...

See ya!
 
It is the whole culture of debt. As long as (insert false rationalization here) can be incorrectly justified. I bailed out my ex-wife twice. The third time I said that is it. As long as the the income stream is being kept active why not let it run up higher, it makes for a great bargaining tool during negotiations. The likely hood of stiffing on a debt in today's world is unlikely. I am sure there is one or several chips that can be forfeited to keep global stability.
It is kind of like when a neighbor says look what I just purchased ,on a loan, there is a false sense of ownership. The reasons for most heavy debt is when a person or a nation is in a rapid expansion mode the contractual holdings may or not be back filled at a later date.
The largest factor is fiscal responsibility the two nations are in a dangerous dance both parties will probably kowtow to each other. A bad lender is also to blame for the problem for not cutting someone off sooner. When obligations can not be meet, ownership is transferred and actuality sets in.

Akuma
 
Everyone hits being in debt, but there are two breeds of people in getting rid of debt, one is to pay off, other other is to default. :D
 
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