China holds over $1 trillion of our debt (Reagan, regime, nationalist)

[padcrasher]

Originally Posted by summers73

It would help if you had a clue about how bond markets work before assembling that strawman.

(In before padcrasher makes up a story about how he's supposedly involved with the financial markets or knows people who are.)

ooh that would be a fun story!..care to link to any post of mine where I've claimed expert or insider knowledge on anything?

I won't hold my breadth.

[zoomba]

Wow, color me surprised that the C-D leftwing nutcase brigade is fine with all this.

[Bostonian123]

Only idiots who believe in glenn beck conspiracies or dailykos gossip actually think that China owning lots of US treasuries is a problem for America. Let me tell you something that will actually surprise you. This is a problem for China only and we should encourage them to continue to buy as much of US debt as necessary for them to keep the yuan pegged to the dollar.

A very smart economist said this about the current China-US relationship : If you borrow $1000 from a bank, they own you. If you borrow $1 trillion from the bank, you own them.

[summers73]

The mother of all ARMs. That is all.

[hawkeye2009]

Originally Posted by DRob4JC

China is financing $1.16T of US debt. Very interesting...

China's US debt holdings jump 30% easing financing fear

Here's the craplist of who owns our debt and the amounts for the last year. China and Japan finances almost half of our foreign based debt.

MAJOR FOREIGN HOLDERS OF TREASURY SECURITIES

US bond holders and the social security admin hold the most. However, regarding China, thank you Bill Clinton!

It is amazing that the left still loves this man, after all the damage he has done to the middle class.

[Stone28]

Originally Posted by hawkeye2009

US bond holders and the social security admin hold the most. However, regarding China, thank you Bill Clinton!

It is amazing that the left still loves this man, after all the damage he has done to the middle class.

I thought Clinton left us with a surplus?

[pghquest]

When a country prints up cash, and then buys another countries debts, the result is a lower standard of living for those who live there, and a devalued dollar..

Case in point.. China..

Now lets examine the next step.. we are now devaluing our own dollar, to pay back the debts owed.. Where has our standard of living been going? Up or down? Wanna bet america = the next China?

[pghquest]

Originally Posted by Stone28

I thought Clinton left us with a surplus?

Clinton did not leave us with a surplus.. He borrowed money in order to have a surplus, which isnt exactly a surplus..

For verification, go to the treasury website and look at the national debt every year clinton was in office.. you will see it went up..

[Randomstudent]

Originally Posted by DRob4JC

China is financing $1.16T of US debt. Very interesting...

China's US debt holdings jump 30% easing financing fear

Here's the craplist of who owns our debt and the amounts for the last year. China and Japan finances almost half of our foreign based debt.

MAJOR FOREIGN HOLDERS OF TREASURY SECURITIES

China owns all that debt for one reason and that is open market operations. In order for China to be able to export to the US they need their currency to be low relative to the US dollar. As a result they print Yuan and use it to buy dollars on the Fx market. This forces the Yuan down and the dollar up with respect to each other. The end result is that the Central bank in China is holding on to a lot of US dollars, which they put into treasury bonds to keep their money safe, liquid, and earning interest.

All in all its all about creating a favorable market for Chinese exports to the US. China does this because they need to keep enough people employed to stave off unrest and having relatively cheap exports is a good way to do that. The problem China is facing now is inflation and how they try to curb that will be what determines what they do with their bonds far more then any US policy.

[Randomstudent]

Originally Posted by pghquest

When a country prints up cash, and then buys another countries debts, the result is a lower standard of living for those who live there, and a devalued dollar..

Case in point.. China..

Now lets examine the next step.. we are now devaluing our own dollar, to pay back the debts owed.. Where has our standard of living been going? Up or down? Wanna bet america = the next China?

Not really, if you can offset it with export-led growth which is what China has been doing, your standard of living goes up...China's standard of living has been on the rise since the 1980s