Originally Posted by Pika...
So basically this mean the following?:
- If we can't pay it back China and Japan can just take land/territory/states from us?!
Not for the US at this point in time, at least. They'd need to take it by force, and that would be... difficult.
As you seem to recognize, there's nobody with the power to enforce such a thing.
I know little about economics, but I suspect the worst that can happen is they refuse to loan us more money, and the dollar becomes valueless. Now, this is quite bad. But not the same as a foreign annexation.
Does someone want to correct me?
Either the shop-owner doesn't know what he's talking about, or he's got some Yen to sell you at "competitive rates."