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<p>[QUOTE="Cloudsweeper99, post: 821750, member: 3011"]Morgan and Peace dollars were minted in the millions, and all except harshly cleaned or damaged coins carry varying degrees of numismatic premiums. It's really about supply and demand. Right now, the market absorbs all the Mint can produce at a slight premium to melt. If production stops, demand will continue to rise and the coin becomes a numismatic piece as time passes.</p><p><br /></p><p>Of course China can opt to receive cash payments as their treasury debt matures over the years, just like any other holder. But the effect is much different than if they had the right to call the debt all at once since there would be no shock to the system.</p><p><br /></p><p>Edit: I forgot to add that the other side of the transaction must also be considered when speaking about China exiting the US Treasury market. The purchase of Treasuries is the offset to the exportation of goods to the US. If China will not accept and hold Treasuries, they must accept a discontinuation of exports to the US. This might happen someday, but I don't think they are at that point yet. This also has the side effect of helping to eliminate the US trade deficit over time, so it isn't necessarily negative.[/QUOTE]</p><p><br /></p>
[QUOTE="Cloudsweeper99, post: 821750, member: 3011"]Morgan and Peace dollars were minted in the millions, and all except harshly cleaned or damaged coins carry varying degrees of numismatic premiums. It's really about supply and demand. Right now, the market absorbs all the Mint can produce at a slight premium to melt. If production stops, demand will continue to rise and the coin becomes a numismatic piece as time passes. Of course China can opt to receive cash payments as their treasury debt matures over the years, just like any other holder. But the effect is much different than if they had the right to call the debt all at once since there would be no shock to the system. Edit: I forgot to add that the other side of the transaction must also be considered when speaking about China exiting the US Treasury market. The purchase of Treasuries is the offset to the exportation of goods to the US. If China will not accept and hold Treasuries, they must accept a discontinuation of exports to the US. This might happen someday, but I don't think they are at that point yet. This also has the side effect of helping to eliminate the US trade deficit over time, so it isn't necessarily negative.[/QUOTE]
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