WHAT HAPPENS IF CHINA CALLS U.S. NOTES DUE?

Good Neighbor Law asked the question: What happens if China calls U.S. Notes Due?
Bob Fanning offered this insightful look.
Thank you Bob! Editor GNL

Bond indentures must have on them "call provisions" Treasuries do not have these.
Treasuries are also litigated in American courts, ergo no risk re your question.

The auction of all this new debt concerns me.
We've hosed central banks all around the world with Mortgage Backed securities, Credit Default Obligations(bundled mis matched debt) and written credit default swaps on all the aforementioned crap.
The "writers" {AIG,Citi, Bear, Merrill, }are all going bankrupt.
Now we walk up to these same people {central banks in a global depression} and ask them to trust us with another 2 to 10 trillion of new debt to be issued in the blink of an eye to bail out corrupt bankers and finance frivolous patronage that will not grow Americas ability to repay.

To anyone going to Congress - this is the issue, and this is the time to asert your leadership and call for an immediate open Joint Congressional investigation of credit default swaps and the damage that they have done to America and the Globe.
Bob

http://www.nytimes.com/2009/03/02/world/europe/02euro.html?_r=2&hp