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Why is China in debt?

Why is China in debt?

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The USA is in debt to china. I think over 1 trillion.

Why would they lend the USA money while they are in debt as well? You would think if they have extra money they would pay off their own debt. If it is not a conspiracy to put populations into economic slavery, what is the reason?

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I forgot to include the website.

http://en.wikipedia.org/wiki/List_of_countries_by_public_debt

Japan holds some of our debt as well and they are deep in debt. Why?

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It's not governments per se who hold debt papers.

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Who have China and Japan borrowed from?

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Originally posted by Metal Brain
The USA is in debt to china. I think over 1 trillion.

Why would they lend the USA money while they are in debt as well? You would think if they have extra money they would pay off their own debt. If it is not a conspiracy to put populations into economic slavery, what is the reason?
If the loans that USA owed were called in by the lenders then you would all be speaking manderin as your first language 😉

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Originally posted by KazetNagorra
It's not governments per se who hold debt papers.
Are you saying the debt is held by individuals or private businesses?

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Originally posted by Mctayto
If the loans that USA owed were called in by the lenders then you would all be speaking manderin as your first language 😉
It's the classic catch 22. They can't call in the debts because they know we can't pay them. It would hurt them just as much as it would hurt us.

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Originally posted by dryhump
It's the classic catch 22. They can't call in the debts because they know we can't pay them. It would hurt them just as much as it would hurt us.
I already know that. The question is why does China have debt?

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Originally posted by Metal Brain
I already know that. The question is why does China have debt?
One good reason for a country to have debt is to create a low-risk asset for people to hold. Plenty of individuals and businesses hold government debt as a means of reducing risk in their portfolios.

From the government's perspective debt is useful for satisfying short-term liquidity needs. In the face of China's rapid growth, issuing debt is a good way to raise capital.

Now, since I've answered your question perhaps you can answer mine. Is China a net borrower or a net lender?

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Originally posted by Metal Brain
Are you saying the debt is held by individuals or private businesses?
Partly, yes. And pension funds.

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Originally posted by KazetNagorra
Partly, yes. And pension funds.
Why are individuals holding debt?

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Originally posted by Metal Brain
Why are individuals holding debt?
Why don't you read my last post (very short) where I answer this exact question?

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Originally posted by telerion
One good reason for a country to have debt is to create a low-risk asset for people to hold. Plenty of individuals and businesses hold government debt as a means of reducing risk in their portfolios.

From the government's perspective debt is useful for satisfying short-term liquidity needs. In the face of China's rapid growth, issuing debt is a good ...[text shortened]... answered your question perhaps you can answer mine. Is China a net borrower or a net lender?
Are the debt holders of Chinese debt Chinese individuals or foreign individuals?

I'm not sure what you mean by net borrower or lender. They lend more than they borrow. Is that what you mean?