4 ms·
sooner or later, China would have to bring trade back into equilibrium. The purpose of debt is to have it repaid one day. This can only be when Chinese are will
by teyc 18y ago
sooner or later, China would have to bring trade back into equilibrium. The purpose of debt is to have it repaid one day. This can only be when Chinese are willing to pay for U.S. goods. This can be either when both countries enjoy some kind of parity.
This is not as far fetched as it sounds. The savings rate of Chinese Gen X'ers are 0. They are voracious consumers. If Chinese goverment decided to fund local debt instead of foreign debt, U.S. manufacturing could conceivably come back and sell into China in the future.