22 Mar 09
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?
22 Mar 09
Originally posted by Metal BrainIf the loans that USA owed were called in by the lenders then you would all be speaking manderin as your first language 😉
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?
23 Mar 09
Originally posted by MctaytoIt'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.
If the loans that USA owed were called in by the lenders then you would all be speaking manderin as your first language 😉
23 Mar 09
Originally posted by Metal BrainOne 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.
I already know that. The question is why does China have debt?
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?
23 Mar 09
Originally posted by telerionAre the debt holders of Chinese debt Chinese individuals or foreign individuals?
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?
I'm not sure what you mean by net borrower or lender. They lend more than they borrow. Is that what you mean?