China Buys-Up US Debt At A Rate Of $15 Billion Dollars Per Month

China Buys-Up US Debt At A Rate Of $15 Billion Dollars Per Month

www.treas.gov
(visit the link for the full news article)


Related News Links:
www.brillig.com

Related AboveTopSecret.com Discussion Threads:
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[edit on (5/14/07) by AllSeeingI]

[edit on (5/14/07) by AllSeeingI]

China is the #2 foreign holder of US debt behind Japan. However Japan is selling-off US debt holdings while China is increasing soon to become the #1 holder. If China chose to use its financial leverage against the US it would cripple our economy.

The national debt grows at a rate of $1.39 billion dollars per day. China buys 36% of this debt.


www.treas.gov
(visit the link for the full news article)

Hey what a better way than financing your enemies to cash out later when the time is right.

Many Americans doesn't know that our own elected politicians through the years has sold our nation piece by piece to many of what are call our enemies.

But ignorance is a bliss.

www.economyincrisis.org...

[edit on 14-5-2007 by marg6043]

I'm glad to see more discussion on this topic. It's important that Americans understand what our leaders are doing to us.

Yup, absolutely right. But..get fair trade through the Duty Dept. Seems the USA has already prescribed it.
China and it's foreign Trade Minister will suffer here. I can only hope that Canada follows suite.

Dallas

Oh I think we know and understand what are leaders have done to us.

The problem is---What the heck are you and I doing about it again?

With the type of political system we have right now is totally corrupted and taken over by an elite of few that controls who we chose for candidates and who we should vote for.

At the present state of our political system is impossible to do anything to stop them.

They pretty much control us, even when we are told that we elect our politicians the truth is that we vote for their choices. no ours.

Well always being helpfull to our american counterparts, im willing to run a raffle at the local chinese take-away, with the top prize being your current president....

Perhaps we can get some of that cash back for you?

We tried putting him on the chinese version of ebay, but it closed with no 出价's!

China's thinking or has already done switching to eurodollars. The Bush juior Administration has suspended withholding duties against China for that move -- right decision (long term) in my opinion Shar.

Dallas

While people in Americans has been spoon fed that we are the only great superpower and that we have the best democratic governmentgovernment in the world and our wars are for the purpose of bringing liberty and fight terrorism and our way of life, plus the lengthy litany of how great our economy is . . . the truth is kept hidden from the patriot loving Americans of what is going on in our nation behind our backs and in closed doors.

US right now is on an insecurity pedestal that can be tipped if our foreign investors just decided tomorrow that they do not want to finance our debt.

This financiers are the ones paying for our wars, education, and almost anything that has to do with our budget in our nation including the defense budget.

Our position of Superpower backed by how much our foreign investors are financing us.

At any moment China or Japan can just get tired of the US and its game and just stop financing us.

Then what.

We as a superpower will stop from being the number one.

Learn the truth about our precarious situation.

www.economyincrisis.org...

I think China will pull the rug out from under US very soon, just a few more mis-steps by the Bush administration and we should see the Chinese scuddle our economy, then when we are weak militarily we'll see them invade Taiwan.

Ok. Let's think this through. China is investing in United States debt instruments. Debt instruments get their value from the belief that (a) the entity borrowing money will not go defunct, and (b) interest will be paid as described on the debt note.

If the United States goes bankrupt, to a point where it can not pay its debt (interest), then China's investment goes to nothing. It will lose all Principle. The billions of dollars China invested in the United States will all be lost. What, then, does China have to gain if the US goes bankrupt?

On the contrary, China and other individuals buy US debt instruments because they believe their investment will NOT lose money. The fact that there are large entities such as China investing in the United States only shows the solid belief that the United States economy will stay strong in the long term.

The only irony, to me, is that foreign investors believe more in the United States than its citizens.

Seems to me Taiwan no longer has the export manufacturing output that can keep America interested in Taiwan's security. Don't think that ols rule against China applies now.

The USA is well on it's to hurting China financially I feel. It will, if it's kept up and not a mere browny-point to get them to drop Eurodollar international trade. But either way, the USA and our respected neighbors will suffer financially. And there are many other Countries in the process or will eventually change to Eurodollars as foreign currency sales v USD.

Sad, but even Canada, my Country, is talking about it in order to get more buck for the exported tar-sand oil barrel. We'll see. Harper's Gov (Cda Federal) is only a minority gov and upon their presentation of the yearly budget -- could receive a "Non Confidence" motion if voted down by the other parties. That means Election time and his deal with our friends to south -- USA, becomes basically null & void pending the next elected Cdn Gov. Time will tell..

Dallas

Here are some more facts about the numbers:
China buys about $15 billion dollars per month of the US national debt.
That equals $500 million dollars per day.
That equals $180 billion dollars per year.

And remember that National Debt is the debt of the people which means we OWE China.

China is buying the debt of US citizens at a rate of about $600 per citizen per year.

The frightening thing is that these numbers are expected to double or triple in the years to come.

Unfortunately most know, and understand but will not do anything until a crisis situation is presented, then they will take it out on each other.

That is a good point. However take a look at the chart and see that many nations are not buying more US debt. Many nations such as: Japan, Germany, Switzerland, Italy, Norway, and Mexico have all decreased their holdings of US debt.

It is possible that China is simply buying enough of the US debt until it destroys the US dollar. This is economic warfare and China is buying economic weaponry in the shape of US debt. So what Im saying is that it might be more profitable to China to buy our debt and use it against us KNOWING they wont see that money again.

Honestly, who really cares... Its not like our country wont print as much money as it needs. Let the US and China relations crumble and then what? Who says we owe them anything in the end! Keep the money, and forget about owing them a damn thing!

Thats not quite how it works.....

Do that and watch the value of the dollar plummet. Then how are you going to buy anything?

China could be doing this to actually prop up the US economy, so it still has a buyer for its goods... Needless to say, the US is no longer China's number one trading partner....

That's another very real option, but its not without repercussions. On one hand, it would mean that all of the real, tangible assets we received in exchange for that debt were essentially free. On the other hand, it would make future borrowing very difficult for the next few years or decades and as a result, the US would have to pay a much higher interest rate on any new debt in order to make it worthwhile for foreign investors to risk their money here again.

If relations with the Chinese sour, where are we going to buy all our cheap plastic #? Maybe we could give them Britney Spears, Paris Hilton, Jessica Simpson etc? I dunno where we'll come up with the other 415.8 billion. Meh..