posted on Aug, 19 2011 @ 10:32 PM
Correct me if I'm wrong here, but isn't the Chinese foreign exchange reserve made up of all forex currency within the country? This would then
include the estimated $2 trillion USD parked there by the Indian government, which would make the majority of this surplus that they are bragging
about belong to India, right? If I am correct, then this is really nothing to brag about considering the colossal size of China. In fact , $1 trillion
in liquidity is a little on the sad side for them, especially when you take into account the probability that the other $1 trillion probably isn’t
there’s to spend either. Why are we so worried about china anyway? “The Debt?”
China owns (at my last count) $2.7 trillion in US Treasury Securities upon the bond’s maturity date. AT THEIR MATURITY DATE!!! Do you remember those
treasury bonds for $100 that we would get for our birthdays when we were a kids? It got us all excited then too didn't it? You thought that someone
had stuck $100 in a card and gave it to you, but come to find out, the piece of paper was really just an I Owe You to be paid ten years later. So what
did you do? You tried to find out how much it would be worth if you cashed it in immediately instead of waiting on it to mature, we then learned that
the bond was worth very little until compound interest had time to accumulate and that it would still be years away
When we say that we are in debt to china, it makes most people think that we went over and asked for a signature loan and are making monthly payments,
that is not even close to the reality of what’s going on. We encouraged them to buy large amounts of securities to be paid back in 30 years, and
probably gave them a better rate to sweeten the deal. As we learned when we were kids, that treasury bond is worth less than $1trillion if it were to
be cashed in today.
Also, here’s a little stock tip for free, go out and buy some Treasury Securities at current interest rates. It may give you a little peace of mind
to know that the government is in debt to it’s own citizens and not to another government The rates are low right now and will go up soon, thus,
huge profits could be made for Americans instead of the Chinese Gov