> Mo wrote:
> I think the entire "bailout" happened because they were threatening to
> call the loans, which would have put them in ownership position of a
> huge chunk of the American financial infrastructure.  Wanna know where
> the money went?  The banks paid their debts to their Asian creditors.
>

I don't think that can happen because China owns US bonds and they can
no more "call them in" than we (citizens) can.

The problem with printing money is that it makes each dollar less
valuable which means your bond pay out will buy fewer goods and
services than when you bought the bond.

If the dollar inflates too much, the bonds become worthless and nobody
will buy the debt.

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