Re: What if Japan sells US debt holdings to rebuild?

Blash wrote:
Adam Russell wrote on 3/14/11 3:26 PM:

DraggonFodder wrote:
On Mar 13, 9:22 pm, Blash <hairyha...@xxxxxxxxxxx> wrote:
On Mar 13, 8:54 pm, DraggonFodder <commogu...@xxxxxxxxx> wrote:

OK, they own 20% of our 14 trillion in debt. What if they cash in
next month to start rebuilding. Ouch.....
DraggonFodder
. . . what does "cash in" entail?
Cash in may be a bit vague... how about redeem. Just a thought, may
never happen but what if????
I could be wrong but dont you have to wait for maturity before redeeming?

Yes.....but you can sell in the open market at any time........


Thats why it would be called selling not redeeming. The effect of selling is that overall prices would dip. The effect of redeeming would be that the US would have to pay out big $'s. Big enough difference that imo calling it redeeming would be a lie.
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