On Sep 13, 2006, at 6:04 PM, Charles Brown wrote:
> Could the U.S. creditor nations collect their debt without causing
> a big
> crisis which would impact the creditor nations adversely ?
They couldn't dump huge quantities of US paper, no, but that's unlikely to happen. Debt is rarely ever "collected" - big companies either roll over their debts and even borrow some more, and countries just roll over their debts in perpetuity. The more serious problem is if China or other countries decide they don't want to lend any more to the US, or don't want to lend so much. That would probably require a pretty deep US recession to balance the foreign accounts. That sounds like a good historical mission for President Hillary - a self- imposed structural adjustment program.
Doug