China owes America billions?
What Chinese debt, you ask?
From 1900 to 1938, the government of China, like many other governments including our own, took on sovereign debt and issued bonds based on their full faith and credit. The American Bondholders Foundation (ABF) has testified before Congress that thousands of American families bought and still hold those bonds, relying on the fact that the U.S. Treasury bought them too. But then, when Mao ran Chiang Kai-shek off to Taiwan in 1949, the communists refused to pay interest or principal on the bonds issued earlier by their enemy, the “reactionary” Kuomintang administration. For over 60 years, American families have been bilked by communist China.
In 2001, the ABF was founded by Jonna Bianco after the Department of State, the Treasury, and the National Security Council told her they had decided not to pursue China’s default on its sovereign debt since it was a “private citizen’s matter” and besides, they had more important things to do. But what about the Chinese bonds held by the U.S. Treasury? It is one thing for China to stiff 20,000 low- and middle-income U.S. citizens, and an entirely different thing to stiff 315 million Americans whose tax dollars were used to buy those sovereign bonds. What we are talking about, says Ms. Bianco, is $750 billion!
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