To: riverdawg
23 posted on
06/30/2015 11:20:09 AM PDT by
driftdiver
(I could eat it raw, but why do that when I have a fire.)
To: driftdiver
Well, I suppose that no scheme from this administration is to be considered too absurd. The problem for China is that trade is a two-way street. Yes, China has bought a large amount of U.S. debt, lending us money to fuel our demand for Chinese goods. But, in order to sustain our purchases of their goods (and their output and employment at current levels), the Chinese have to do something with the dollars they receive. China can buy more of our bonds or it can buy more U.S. produced goods (narrowing the trade deficit) or buy more U.S. assets like equities and real estate or, realistically, some combination of these three things. Those are the alternatives for China; it's just balance-of-payments arithmetic.
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