China is not bothered because
China is more than happy to own almost a fifth of the U.S. debt owned by foreigners. Owning U.S. Treasury notes helps China's economy grow. It keeps the yuan weak relative to the dollar. As a result, Chinese exports are less expensive than U.S. products. China's highest priority is creating enough jobs for its 1.4 billion people.
The United States allowed China to become one of its biggest bankers because the American people enjoy low consumer prices. Selling debt to China pays for federal spending that spurs U.S. economic growth. It also keeps U.S. interest rates low. But China's ownership of the U.S. debt is shifting the economic balance of power in its favor.
Posted By: ghostof barry butler on September 18th 2018 at 12:17:47
Message Thread
- Donald Trump.......he really is a bit silly . (General Chat) - CROYDONCANARY, Sep 18, 08:31:12
- I wonder if the US is considering paying back the approx $1.2 trillion they owe China (n/m) (General Chat) - pants, Sep 18, 11:57:43
- China is not bothered because (General Chat) - ghostof barry butler, Sep 18, 12:17:47
- Like a toadstool (General Chat) - Winged Eel Creosote, Sep 18, 11:20:56
- He's an ideot. (General Chat) - Under soil heating, Sep 18, 09:42:36
- thats not what he thinks. He thinks it will mean steel workers jobs are protected as the (General Chat) - kinder egg, Sep 18, 11:33:14
- But those policies... (General Chat) - CWC, Sep 18, 10:55:36
- I wonder if the US is considering paying back the approx $1.2 trillion they owe China (n/m) (General Chat) - pants, Sep 18, 11:57:43
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