How exactly does China own US debt?
Beau asked:
Everyone says that China owns US debt. What does this mean exactly? Is the Chinese government buying US Treasury bonds? Is the Chinese government hoarding US Dollars? Are Chinese businesses buying American business’ bonds?
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Filed Under Economics |
Tagged With American Business, Buying Us Treasury Bonds, Chinese Government
Comments
7 Responses to “How exactly does China own US debt?”
idk but US it self is sure in a lot of debt too
China has loaned us trillions of dollars (mostly for the Iraq war) and the amount continues to go up. so their economy is the bomb while we are heading into recession because of an empty treasury and massive foreign debt. this gives them significant political leverage on us too.
When the government wants to spend more money than it is willing to tax the people for it issues Treasury bonds. When investors, either individuals or a foreign government, buy T-bonds they are loaning the government money. China owns about $350 billion worth of our debt, putting it third behind the US government itself at over $4 trillion (the Social Security “trust fund” is just IOUs from the Treasury) and Japan at $644 billion. China also holds over $800 billion in US dollars as part of their foreign exchange reserves.
Answer: All the above.
Chinese hoarding worthless dollars, 1 trillion +
Chinese buying up American assests on the cheap. [We will be their servants for an eternity]
Chinese are buying less treasury bonds.
We have to approach China [our new banker] with hat in hand, and respectfully request any action to be taken.
It is going to get way worse before things can remotely start to get better.
Does this help any?
US is indebted to the world thru bonds and the dollar reserves they hold. so, most of the things you have said are exactly the reasons why China owns US debt. That’s why China couldn’t care less what US wants them to do to their currency.
Tim B has the right of it.
The US economy is hopelessly indebted to China, and your currency is seriously debased as a result of the actions of your government over the past century.
China has sufficient US dollars to totally render the USD as essentially worthless. It chooses not to destroy the dollar for reasons of it’s own, not because of any American economic strength or threat, which it sees as illusory.
China has also been buying up large reserves of gold and silver bullion, store of real wealth
well china is still a develop country their economy may triple the u.s economy but the U.S send the resource to china so that they can made the stuff that sell back to the U.S so sometime the economy go spoil like right now the U.S not gonna buy stuff form china so it stop the system. this bring china into debt with the resource that we send to them by the way china is the number one steel consumer in the U.S