As the U.S. teeters closer to the brink of debt default, the political stalemate is being watched closely by its biggest foreign creditor, China. At last count, Beijing owned almost $1.2 trillion of U.S. Treasury debt.
By Bob DeMarco
All American Investor
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"If you owe the bank a million dollars, the bank owns you. If you owe the bank a billion dollars, you own the bank. Right now, the problem that China's in is that it's owed probably around $2 trillion ... Even though supposedly they're the creditor, they're actually in the weaker position, because they're not a creditor by choice, and they're not a creditor in their own currency. They're a creditor in someone else's currency, and that puts them in a very vulnerable position," Chovanec says.
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Original content Bob DeMarco, All American Investor
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