Quote:
Originally Posted by Ronald Pagan
The suggestion that for some reason China is going to stop lending to the U.S. is completely ludicrous.
It's a mutually dependent arrangement. Neither side has anything to gain from walking away from it.
China will keep lending no question about it. The only issue is to kickstart growth again.
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Obviously its not going to be to zero. But, there will come a point that China can only "lend so much" which will be the issue. While China will always lend to the US, I don't think its a good idea to depend on them so heavily and forever*.
* = although I realize the USA will probably depend on China to lend them lunch money for the next century