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December 14, 2012 at 5:47 pm
#17442
Participant
Well, they hold bonds and notes with specific maturities. They can’t just say “give me the money now” at any given moment.
That said, IF, when the bonds expire (and I’m sure they hold bonds with a large variety of maturities) the Chinese refuse to buy new ones, the government will simply pay them back with the proceeds from bonds they sell to other entities, like say, the Federal Reserve.