[maui_hawaii]

Maybe I should clarify myself...I am referring directly to the Chinese ownership of treasury notes...

They own barely 2% of any debt the US has...

The make up and nature of that debt leads me to believe that they aren't doing diddly in that ballpark.

[Malsua]

>>Maybe I should clarify myself...I am referring directly to the Chinese ownership of treasury notes...
They own barely 2% of any debt the US has...

The make up and nature of that debt leads me to believe that they aren't doing diddly in that ballpark.
<<

Let me clarify a bit then.

Chinese debt is a currently a small portion of those buying us bonds.

The real issue is that as European countries are backing off on the debt to the US, China is the biggest uptaker.

The USA is running such a deficit around the world that the EU countries are not buying so much in dollars. China, Malaysia, Thailand are the primary buyers who are buying up the difference.

Considering that 10% of China GDP is only under 1% of the US GDP, one has to look at the real numbers. China's undervalued RMB is trying to energize the country. If fact that cheap Yuan is doing it. China is exploding in capitalism. They are having growth that the US hasn't seen since the turn of the the century.

China is where the USA was 100 years ago...We can hope the worker protections come as they did here in the US. Time will tell.

-Mal