It gets better. 3. The Chinese use the money we give them to buy gvt bonds. 4. The gvt bonds are spent by the gvt. 5. This spending is added to GDP. 6.

It gets better. 3. The Chinese use the money we give them to buy gvt bonds. 4. The gvt bonds are spent by the gvt. 5. This spending is added to GDP. 6. GDP appears to have gone up. Without gvt debt, GDP is the same it was in 1998.