What We’re Not Talking about Regarding the China Threat
The threat from China continues even with the Spy Balloon shot down. And Congressional Republicans could do something about it. If they wanted to.
The threat: US Treasury Bonds. Not as exciting as a Spy Balloon, I’ll admit, but still a threat.
China is one of many holders of US Treasury Bonds. Treasury Bonds are how we manage our debt and are considered the safest investment on the planet [ need to verify & source].
Enter Congressional Republicans, as we are currently standing, we may default on payments to these treasury bonds. That would increase our interest rate on the outstanding bonds. Which would increase our payments to individuals or countries holding those bonds.
The Republican House is currently threatening to do just that. Default on our payments, increasing our interest on treasury bonds. Which will not only threaten the global economy, but it will also increase our personal interest rates.
If we default on the treasury bonds credit card & mortgage interest rates will go up. Remember the inflation last summer? If we default on the debt, not only will we be paying China more for holding the bonds, but we will also be paying more for day-to-day items and on our monthly bills.
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