Just like Japan was going to buy up everything in the 90s, right ? I wouldn’t be worrying too much about some of these types of hyperventilating articles.
No they won't.
We have some serious problems the greatest being the propping up of legacy industries and govt intervention in the mkt. It will take a generation to get back on the right track, but we will.
What I’m trying to figure out is where China got money to loan to us? Up until the late 80’s China was a fairly moribund country until western INVESTORS poured money into China to build factories and hire workers cheaply. It seems to me they’ve been loaning us money we had already had LOANED or INVESTED in them. Perhaps we really owe CHINA nothing!
I know my analysis is wrong somewhere...but I never see the question asked, where did China get the money to loan to us?(IE, the money with which to buy US treasuries and bonds?)
You owe the bank 100,000 the bank owns you.
You owe the bank 100,000,000 you own the bank.
If the Chinese make anykind of hostile move to the dollar,
that 2 trillion they “own” becomes toilet paper.
Would that mean no more Barney Frank?