• 0 Posts
  • 7 Comments
Joined 8 months ago
cake
Cake day: May 23rd, 2025

help-circle





  • the scenario in which China just stops selling to the US would probably collapse China’s economy too. Think about it. Why is the national debt so high? How is it that high and yet “most prosperous nation in the world”? International investment. There’s a lot of money invested from China and other countries. Their investments are only good so long as the American economy is good. International investors can leverage American debt to them as sort of capital asset to thereby invest in other things…

    It’s a giant domino effect. When China pulls out, the American economy will likely collapse… but, then all the money people had invested and had leveraged also collapse… and so then those international investors can’t pay their debts because they have nothing to leverage it with and thus also collapse… and so on and so forth… the ripple is wide.