China’s Grip on U.S. Debt

What if Japan "hooks up" with China?

So long as Obama is President this nation will continue to fail.

Ever heard of the Rape of Nanking?

The US debt owned by China is actually more of a problem for them than it is for us. The reason is that they can't do anything with it. They could take those T-Bills and burn them for all the good it does them. To figure this out, look at Germany in 1970's.

In 1971, the US had an official inflation rate of 6%. Unofficially, it was more like 8-10% if memory serves. Germany had a big trade surplus with the US. When German exporters turned their dollars into the Bundesbank in exchange for Deutsche Marks, under the fixed exchange rates of Bretton Woods, the Bundesbank was force to print more Deutsche Marks to cover all the dollars coming in.

In essence, what was happening was that the US was exporting its inflation to Germany. The solution for the Germans was to repudiate Bretton Woods and float their currency against the dollar. In the next six years the exchange rate went from 4 to 1 to 2.2 to 1 and German exporters got hammered. The export steel industry was pretty much wiped out and auto makers refocused from cheap reliable cars to high-end luxury models. Because, when given a choice between inflation and unemployment, the Germans will pick unemployment.

The Chinese will not do what the Germans did in 1971 because they are scared to death of what will happen if millions of Chinese become unemployed because their export industry can't compete on price. So far, the Chinese have kept all that US debt sequestered on the Bank of China's books so it doesn't show up as yuan inflation. It's a fair question if they could do anything with US debt besides letting it collect dust and interest.

I firmly believe the left does know this. This the very reason why they are doing this. They simply want less for all of US. I recall some of them sounding guilty for all of our prosperity.

Obama’s Commerce Department—‘Spreading The Wealth Around’ Globally
http://netrightdaily.com/2011/06/obama’s-co...

"The marvel of all history is the patience with which men and women submit to burdens unnecessarily laid upon them by their governments." George Washington

First you need a plan – BO does not have it.

Maybe if he if truly had concern for the country and not his cause he would get it understood

Spending trillions is not working -even if you figure how much government has grown

BO needs to go

China buys US debt to keep it's own currency artificially under-valued and the US Dollar artificially over-valued. When you understand that, you understand everything. China is like a hamster in a wheel. If the Dollar falls, the wheel stops.and millions of Chinese lose their manufacturing jobs. What happens then?

China can't compete if its currency is fairly valued. Think about it. Its government is terrified of social instability. That's why it keeps buying T bills. It has to keep all those people employed. China's leaders are really holding the weak hand here.

We/our kids are getting the shaft/screwed by our government and universities. U of M is one of them. The Chinese students in droves are stealing our kids futures. What is Obama doing about this………….nothing! His regime is behind it.
http://www.china-threat.com/

We/our kids are getting the shaft/screwed by our government and universities. U of M is one of them. The Chinese students in droves are stealing our kids futures. What is Obama doing about this………….nothing! His regime is behind it.
http://www.china-threat.com/

Its real simple. We have to quit pissing away money.

China dumped 87% of the T bills they own. Why?

They know they are worthless! They'll never get paid.

We are like the dufus next door that drives a Cadillac, and pays for his Big Macs with a credit card because he's already spent his next pay check.