Should we cease letting them loan us the money for our profligate spending?
> “Should we cease letting them loan us the money for our profligate spending?”
How does it matter when our debt is at 25T and China is only holding about 1T in Treasuries?
“Should we cease letting them loan us the money for our profligate spending?”
The United States has spent more in its recent stimulus package than the entire rest of the world combined. It’s about three trillion dollars. Half of that debt was picked up by foreign governments at zero percent interest. Why? Because the debt is in US dollars. The rest of the world is expecting their currency to collapse and they are hoping that the dollar won’t. (Peter Zehan.)
This is the same reason that Chinese people are investing in US property. If their currency collapses and they get back seventy five percent of the value of their investments here that is better than getting zero percent back by staying in their own currency.
We don’t need them to buy our bonds.. The Fed Reserve handles all of it now.