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What will happen if the United States takes no action the national debt?

If the US Government continues to keep spending more money and making the debt go higher and higher, what would be the worst possible case for this. Rumors around my job are stating that China will one day own the United States years from now because there is a kid's show teaching preschoolers how to speak Chinese. What do you think will happen?

6 Answers

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  • Anonymous
    10 years ago
    Favorite Answer

    First off, understand the U.S debt is to Treasury bond holders. They do not borrow directly from China or anyone else http://www.treasurydirect.gov/kids/what/what_borro...

    Second, China does not hold much more of the securities debt than Japan. And in fact, China has buying fewer bonds, while other governments have been buying more. http://www.treasury.gov/resource-center/data-chart...

    Third, the debt will only go as high as investors are willing to hold in debt. They (Treasury) can issue as much debt as they want, but unless they attract buyers, it has the same effect as if you wanted a loan, and nobody would lend it.

  • 10 years ago

    Well we definitely wouldn't go to war with China because we are both good trading partners. Now though it's hard to believe America still outproduces China and any other country in the world by a good deal. Now remember we are much more militarily advanced then China ( I mean they just got their first air craft carrier and even then it's just some old USSR dingy.) So we can just say screw it were not paying then we might get into a conflict Which we would eventually win. The only problem is when you shoot one Chinese soldier 10 more spring up.

  • ?
    Lv 7
    10 years ago

    The hugh debt of the US is a sign of a country living beyond its means. China has its own problems and won't be taking over the country anytime soon. Cities like Detroit can no longer afford to pay for street lights. Whats next - Fire Stations only operating week days? electricity being switched off at the power stations at 10pm every night? thousands of public servants including Police being layed off? US Defence force shutting down for the Christmas break? Perhaps we should look to failed states like Afghanistan, Pakistan and Somalia to get a picture of the future.

  • 10 years ago

    Default, hyperinflation or a combination of both. WW3 will come before china "owns" America.

    The plan is to deflate the debt away by devaluing the dollar over a medium to long period.

    The ultimate result is a global currency and global debt slavery to the banksters.

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  • 10 years ago

    Blah blah blah. **** happens. Live in the present. The worst case scenario is you die. Oh and that's gonna happen no matter what.

  • luis l
    Lv 6
    10 years ago

    USA BASIC ECONOMY ARE BASED ON BULLIED TRANSACTIONS,IF YOU DON´T PAID AND FOLLOW MY RULES,YOUR INCOMES CAN BE DESTROY,AND REMEMBER WE HAVE THE POWER TO DESTROY YOUR WORLD AND YOUR PEOPLE.

    YOU ALWAYS HEAR USA HAVE ARMY FORCES HERE AND EVERYWERE TO PROTECT OUR NATINAL SECURITY.

    PEOPLE PAID FOR THE POLITICIANS AND RULERS OF USA.

    Source(s): USA BLAME OTHERS FOR BAD ECONOMY?
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