Chinease only have $3 Trillion of US$ which the US cant afford to pay, and Chinease have already said in the media they know that USA cant pay it back its impossible.
This is also probably why China is hording gold now, there is only 80,000 tonns of gold bars in the world and China bought over 1,500 last year! it is looking like china will go back to how it was 50 years ago where it will trade with other countrys using Gold again instead of using $US.
I also note the 60 million empty homes, they need to be paid of either through private investors or the companies that built them. If no ones buying and everyones losing their jobs you have another subprime incident where China was selling wealth management products (just like derivitives in US Subprime) but they have around $10 Trillion of them.
China cant bail that volume of money out, its a much bigger problem than sub prime and china is a lot smaller than the US economically.
