Iceland's government topples amid financial mess

[Common Sense Al]

Iceland's government topples amid financial mess



Scary, especially considering the amount of debt the US gov't has that might lead to something similar.

REYKJAVIK, Iceland – Iceland's coalition government collapsed Monday, leaving the island nation in political turmoil amid a financial crisis that has pummeled its economy and required an international bailout to keep the country afloat.

Iceland even had help from the international community, but who's going to bail us out?

[Fred]

Iceland even had help from the international community, but who's going to bail us out?

China!

[Common Sense Al]

Iceland even had help from the international community, but who's going to bail us out?

China!

Do they really have that much money?

Maybe Saudi Arabia and the middle east can also bail us out since we sent a lot of our money over there for their oil. I hear they have some big bank accounts, but probably not big enough for the US.

[Fred]

Iceland even had help from the international community, but who's going to bail us out?

China!

Do they really have that much money?

They have $1.9 trillion in cash reserve (that we know of), and already own $1 in $10 of U.S. public debt (more than any other country). Imagine if China were to call in the note today... 再见 (zài jiàn)

[Common Sense Al]

They have $1.9 trillion in cash reserve (that we know of), and already own $1 in $10 of U.S. public debt (more than any other country). Imagine if China were to call in the note today... 再见 (zài jiàn)

Are the notes callable?

Perhaps we should start requiring that children learn Chinese in schools.

[Fred]

They have $1.9 trillion in cash reserve (that we know of), and already own $1 in $10 of U.S. public debt (more than any other country). Imagine if China were to call in the note today... 再见 (zài jiàn)

Are the notes callable?

Realistically, probably not. At least I would hope not.

However, China owns over $680 billion in U.S. Treasury securities, which represents a little over 22% of the 3.1 trillion in Treasury securities owned by foreign countries. I'm not sure what type of securities (bonds, bills, notes, etc.) another country can buy, but some of those may be redeemable prior to maturity just like those that you and I can buy. The good news is that since China has such a large cash reserve, it's not likely they would prematurely sell their U.S. securities. I hope...