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To: 9thLife

Great. We’re still borrowing money from China to buy stuff made there. They get our money once when we buy their goods, and again when we pay the bonds back.


4 posted on 05/16/2015 5:42:21 AM PDT by TwelveOfTwenty (See my home page for some of my answers to the left's talking points.)
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To: TwelveOfTwenty
They are losing money in the deal because the interest rates on the bonds are lower than the effective rate of currency inflation.

This is one of the curious consequences of a massive trade deficit between two countries. One country (China) may sell a lot of products to the other (USA), but we aren't bartering for those products. They get paid in U.S. dollars, and they can't eat them so they have to figure out what to do with them.

7 posted on 05/16/2015 5:50:13 AM PDT by Alberta's Child ( "It doesn't work for me. I gotta have more cowbell!")
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To: TwelveOfTwenty
Great. We’re still borrowing money from China to buy stuff made there.

Another false argument. We sell treasuries to whoever will buy them in order to support the government's deficit spending - mostly spent on "entitlements", defense, and infra-structure here in the US. The fact that China buys US treasuries, has absolutely nothing to do with Chinese products being sold in Walmart and Target.

8 posted on 05/16/2015 5:52:53 AM PDT by Go Gordon (Barack McGreevey Obama)
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