[mdmathis6]

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?)

[SeekAndFind]

where did China get the money to loan to us?(IE, the money with which to buy US treasuries and bonds?)

The most directly observable response to this is -- China gets the money from AMERICAN CONSUMERS, who, through places like Wal-Mart, Best Buy and thousands of other stores across the country, IMPORT goods they make from them using US Dollars.

The moment Americans stop buying these goods, China will cease to have US dollars.

[ninonitti]

where did China get the money to loan to us

They made stuff with near slave labor and sold it to us. We sent them money for the stuff they made.

US companies closed plants here because they could make a lot more money on Chinese goods.

They made more stuff. Repeat this enough and you're in the hole big time.

Everyone's happy until the slaves begin to look for something other than IOU's after their 12 hour days.

A hard rain is gonna fall.

[Habibi]

“....where did China get the money to loan to us?(IE, the money with which to buy US treasuries and bonds?)”

Have you been to Walmart, K-mart, Target or looked at the tags on the consumer products you have in your own home? About a bazillion Chinese men and women put their sweat and lives into getting all that “stuff” to you (and us).

That should answer your question.