Dollar picks up to 11 years high, Euro struggles

Hahahahahahahahaahahahahaha

Please, please tell me you're joking. Right? You have to be. You cannot be serious right now?

If you really just mean't what you said and are not trolling, I just have to tell you that you are extremely ignorant of how US debt (and government debt, in general) works. It is not a household debt, such as a mortgage or a student loan. That is not how it works, not even close.

The US debt pretty much consists of US treasury bonds and other securities that the US government sells to other governments/companies/people. Investors invest in US treasury bonds because they are considered to be the safest investment in the world.

When a country, such as China, buys US treasury bonds, they are investing in a US treasury bond for x amount of money and x amount of years. The bonds have a set maturity age. China cannot just "call in" the debt one day because it feels like it. If China invested in a 10 year bond, then it must wait 10 years before it can withdraw its money with interest.

Also, over 2/3 of the US debt is owed to the American people. That's right, not China, Japan, or any other country or entity. The vast majority of the American debt holders are American citizens and companies.

Also, a large percentage of the debt is actually owned by the US government itself... So, the US pretty much owes itself money. The other 1/3 of the debt is owned by other countries/entities. China, only owns about 7% of the total American debt. That is pretty much the same amount that Japan owns, as well.

And let's not forget the fact that the US is as much of a creditor as it is a debtor. For every dollar the US owes, the US is also owed about 70 cents...

Make no mistake, the US is always paying off its debts. However, every time it pays a portion of its debts off, it goes on to sell more treasury bonds. Why? Because, once again, they are the safest investments in the world and are in huge demand, in the US and around the world.

/r/worldnews Thread Link - themarketbusiness.com