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  • Writer: Nam Phong
    Nam Phong
  • Sep 11, 2019
  • 1 min read

If news that a default was in the offing broke, there would be a massive sell down of their bonds, leading to a price collapse. As China owns the vast majority of the US debt, this would have serious implications for their economy too. Interest rates in the US (and by extension around the world) would rapidly rise. 

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