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Let's also not forget why China owns so much U.S. debt. This is the result of many years of amassing U.S. dollars in order to peg the Chinese yuan, in violatio
by skwirl 13y ago
Let's also not forget why China owns so much U.S. debt. This is the result of many years of amassing U.S. dollars in order to peg the Chinese yuan, in violation of International law. Since spending those dollars on real goods or services would allow their currency to float freely relative to the dollar, they used them to buy treasuries. I would highly recommend watching https://www.khanacademy.org/science/core-finance/money-and-banking/currency-tutorial/v/chinese-central-bank-buying-treasuries https://www.khanacademy.org/science/core-finance/money-and-b... for a good explanation of what is going on.
The point of this currency manipulation was to artificially keep Chinese goods cheap for export. This is why we have a perpetual trade imbalance with China. This has hurt U.S. manufacturers and cost untold numbers of American jobs.
It's silly to think that we owe China any favors for manipulating their currency for their own advantage and our detriment, and bringing it into this debate to try to make China seem like some poor victim is really, really reaching.