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

On Mar 15, 12:17 am, Adam Russell <adamrussel...@xxxxxxxxxxxxxxxxx>
wrote:
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.

This is a what if question so the specific words are neither wrong or
right. Looking for discussion here and got it. So, if they don't
sell, let's say they try to resell and don't get any buyers. Wouldn't
that reduce the value of all our debt... OK, brain on overload, say
they can't sell their 500 billion note so they sell it for 200
billion. That would bring down the value and cause a panic in selling
our debt. We wouldn't be able to sell any more debt as there would be
no buyers and when maturity comes, they would all redeem... Woe is
us. Luckily, the world never does what I think.

DraggonFodder
deep thought or am i just in deep s**t.
.