The US pays the People's Republic of China (PRC) interest on bond debt of $850 billion. But as it turn out the PRC owes it's US bond holders more than $1.6 trillion.
China is in default on this obligation. The American Bondholder's Foundation(ABF) represents the interests of the US bond holders .

US group tries for historic returns on China bonds (theage.com.au) (https://www.theage.com.au/national/us-group-tries-for-historic-returns-on-china-bonds-20020405-gdu3r9.html)

Some history is required . The Republic of China (ROC) ;before the communist takeover in 1849 had issued long term gold backed bonds that they defaulted on in 1938 during the Japanese invasion. When the communist took over the ROC fled to Taiwan. Then the PRC was internationally recognized as the successor government .

Interational law says that successor governments assume the debt of the previous government .

About 20,000 US bond holders are owed over $1 trillion.

Back when Maggie Thatcher was Brit PM she took a strong stand against China and held the return of Hong Kong over their heads as leverage. The PRC agreed and settled their debt with UK bond holders

But successive US administrations decided to ignore the issue and gave China a free pass. They thought it better to have access to China markets and for China to have access to ours.

$1.6T in century-old Chinese bonds offer Trump unique leverage against Beijing | Fox Business (https://www.foxbusiness.com/markets/historic-chinese-bonds-trump-leverage-beijing)

That may or may not have been the right policy when we were in a delusional state of economic cooperation with China . But there is no longer any pretenses . The state of our relationship with China has soured . They are our biggest adversarial threat .

But what about the age of the bonds ? That is an irrelevant consideration.

2010 Germany paid back obligations going back to WWI

Germany Set to Make Final World War I Reparation Payment - ABC News (go.com) (https://abcnews.go.com/International/germany-makes-final-reparation-payments-world-war/story?id=11755920)

2015 Great Britain paid off debts some of which were from the 19th century .

Paying the price of war: Britain makes good on historic debts | Business | The Guardian (https://www.theguardian.com/business/blog/2014/oct/31/paying-the-price-of-war-britain-makes-good-on-historic-debts)

The US pays China debt we owe them . We must insist they do the same. China has access to the US capital market. They should be denied that privilege .

Quid is compromised . That is why you will not see him take a tough stand against China in the coming San Francisco summit. He prepped for this by sending one cabinet secretary after another to cow-tow in Beijing. Word to JFKerry ;China doesn't give a damn about climate change .

China is bankrupt .The amt of capitol leaving China is greater than is coming in.

Capital is leaving China at the fastest pace in more than 7 years, sending the yuan lower (yahoo.com) (https://finance.yahoo.com/news/capital-leaving-china-fastest-pace-222441993.html)

This is due primarily to Xi's inept rule . They heavily subsidized whole ghost cities of unoccupied real estate.

Inside The Ghost Cities Of China That Look Like A Futuristic Dystopia (allthatsinteresting.com) (https://allthatsinteresting.com/chinese-ghost-cities#14)

That bubble has burst .

Why is China’s property market failing? What happened to Evergrande, Country Garden? (afr.com) (https://www.afr.com/world/asia/why-china-s-property-market-is-in-freefall-20221004-p5bn4q)

A good portion of China's debt is dollar denominated . They can't simply print monopoly Yuan to address their debt . Several banks are not permitting withdrawals .Rich people trying to leave China are not allowed to take money out of their accounts .

The last Chinese leader who was advocating capitalism mysteriously and conveniently died of a "heart attack" last month .

Former Chinese Premier Li Keqiang has died at age 68 of heart attack | AP News (https://apnews.com/article/china-former-premier-li-keqiang-died-537e0dbbc2a4023915cb428f44540468)

There is no obvious successor to Xi .

Clueless Joe has slowed down because of age .He was always slow witted and wrong on most issues of foreign policy. Xi is naturally slow witted. They only finalized his trip the San Fran recently because of concerns of a coup while he is away (ooops rumors of coups )

China's Xi reemerges after trip abroad quashing unfounded 'coup' rumors | CNN (https://www.cnn.com/2022/09/28/china/xi-jinping-reappears-before-congress-intl-hnk-mic/index.html)

Biden and Xi Jinping have agreed to meet, official tells AP | AP News (https://apnews.com/article/us-china-wangyi-biden-blinken-fbaef1a1afb599807a8fe47f3600a384)

So we know this summit is not well thought out . It reeks of desperation.


What will Quid agree to knowing the PRC has the Biden crime family on retainer ?

It is anyone's guess.

We are stupid enough to still pay them for bat research after it is almost undeniable that they unleashed covid on the world .

NIH restarts bat virus grant suspended 3 years ago by Trump | Science | AAAS (https://www.science.org/content/article/nih-restarts-bat-virus-grant-suspended-3-years-ago-trump)

They heavily subsidized whole ghost cities of unoccupied real estate.Incredible but true. Pics don't lie. Most amazing is the large shopping malls that lie deserted.


We are stupid enough to still pay them for bat research after it is almost undeniable that they unleashed covid on the world .Nothing should surprise us anymore. The fed budget has become so large that it is uncontrollable. Only substantial budget cuts has any hope of reeling in this absurd spending.

It is an easy fix. No economic activity with China and suspend payment on our obligation to them until a repayment of debt they owe us is paid. Longer term they are no longer reliable economic partners as long as the CCP rules the country . We need to immediately take steps to decouple ;especially in critical and strategic supplies .