They've already turned in their dollars for Treasury bonds. If they go to sell, they put selling pressure on these bonds, lowering the price of their remaining assets and raising the yield on the bonds being sold and any bonds that will be issued in the future...this further erodes the value of their currently owned bonds because any new money going to purchase bonds will go to buy the newer, higher yielding ones. They'd be taking a bath because the terms on their currently held bonds do not change with the conditions of the market. Nice try though for someone with little understanding of the process. At least you knew that interest rates would rise but you probably did not really know why they would.
I don't think increasing foreign control of our economy is a good thing.
Well, there is one thing that you pro labor types might like about foreign ownership of production plants and the like: they generally pay wages above that which American owned firms do.
Myth #6: Outsourcing is a one-way street.
Fact: Outsourcing is a two-way street.
There are currently 6.4 million jobs in the U.S. in which the employer is a foreign company. The rate at which these “insourced” jobs are growing is faster that the rate at which jobs in general are being lost. According to the Organisation for International Investment (OFII), “Over the last 15 years, manufacturing ‘insourced’ jobs grew by 82%—at an annual rate of 5.5%; and manufacturing ‘outsourced’ jobs grew by 23 percent—at an annual rate of 1.5%.”[18]
Moreover, insourced jobs are often higher paying than those that are outsourced—e.g., the 4,300 workers at the BMW factory in South Carolina and the more than 14,000 employed at Honda plants in Ohio. Senator Mitch McConnell (R–KY) brought these facts to the Senate floor on March 4, citing data from the OFII and pointing out that every state has thousands of insourced workers. Michigan has 244,200. Ohio has 242,200. Even Idaho has 13,900 insourced jobs.[19] ~ Source, the Heritage Foundation (hint: not at all liberal today's 'progressive' sense)
Indeed, the sky is falling.
Hey, did you read the second link that I provided in that earlier post? I can help you with some of the bigger words and concept...all you have to do is just ask.
Where did I say that? Germany has a trade surplus. Does that mean their economy is better than ours?
Massive trade deficits hurt the country as whole, drive down the value of the currency, and transfer control of the economy to foreigners.
How do trade deficits drive down our currency? Last year we had a record deficit, but our currency got stronger against the Yen and the Euro. Maybe you're wrong? And how exactly do foreigners control our economy?
The Chinese, for example, could tomorrow sell their dollars, cause its value collapse
The Chinese hold about $250 billion in US treasuries. Selling those dollars would hardly cause a collapse of the dollar.
resulting in massive inflation and increased interest rates.
Hmmmmm....if selling would cause higher rates and more inflation, buying must have caused lower rates and lower inflation. Now, were you telling us why foreigners were bad for our economy?
The deficient compared as a percentage of GDP is less than half of what it was Reagan.