That's a big part of it. But there's an interesting reason for why they are in that positon. The Chinese (as well as other trading partners) make a conncerted effort to take their profits from the trade surplus and keep them in US assets. If they were to convert those profits back to Chinese Yuan, there would be all these Dollars chasing Yuans. The Yuan would rise against the dollar. Then Chinese products wouldn't be so cheap anymore. So, they buy American assets like Treasury bonds in order to keep from devaluing their own currency.

So, in the final analysis, the reason they “lend” to the US government has nothing to do with being nice guys. It's based purely on self interest and trying to maintain an ARTIFICALY cheap currency. It's a really sophisticated form of trade protection.

Another reason they are in deep trouble is because they rely heavily on exports (to the entire world, not just the US). Demand for Chinese goods has fallen off a cliff. This is the biggest reason why they are in deep trouble.

That's a big part of it. But there's an interesting reason for why they are in that positon. The Chinese (as well as other trading partners) make a conncerted effort to take their profits from the trade surplus and keep them in US assets. If they were to convert those profits back to Chinese Yuan, there would be all these Dollars chasing Yuans. The Yuan would rise against the dollar. Then Chinese products wouldn't be so cheap anymore. So, they buy American assets like Treasury bonds in order to keep from devaluing their own currency.

So, in the final analysis, the reason they “lend” to the US government has nothing to do with being nice guys. It's based purely on self interest and trying to maintain an ARTIFICALY cheap currency. It's a really sophisticated form of trade protection.

Another reason they are in deep trouble is because they rely heavily on exports (to the entire world, not just the US). Demand for Chinese goods has fallen off a cliff. This is the biggest reason why they are in deep trouble.

That's a big part of it. But there's an interesting reason for why they are in that positon. The Chinese (as well as other trading partners) make a conncerted effort to take their profits from the trade surplus and keep them in US assets. If they were to convert those profits back to Chinese Yuan, there would be all these Dollars chasing Yuans. The Yuan would rise against the dollar. Then Chinese products wouldn't be so cheap anymore. So, they buy American assets like Treasury bonds in order to keep from devaluing their own currency.

So, in the final analysis, the reason they “lend” to the US government has nothing to do with being nice guys. It's based purely on self interest and trying to maintain an ARTIFICALY cheap currency. It's a really sophisticated form of trade protection.

Another reason they are in deep trouble is because they rely heavily on exports (to the entire world, not just the US). Demand for Chinese goods has fallen off a cliff. This is the biggest reason why they are in deep trouble.

China may well be screwed for an entirely separate, simpler reason. They're sitting on piles and piles of US debt. Talk about your bad loans. Plus cash reserves stored as dollars have taken massive hits over the last 18-months. Combine that with export cliff-diving and you can pull the plug on their economy in a heart beat.

China may well be screwed for an entirely separate, simpler reason. They're sitting on piles and piles of US debt. Talk about your bad loans. Plus cash reserves stored as dollars have taken massive hits over the last 18-months. Combine that with export cliff-diving and you can pull the plug on their economy in a heart beat.

You write a bunch of cr@p. Then you try to cover your tracks by saying I misunderstood you because I didn't follow a link to more cr@p. Who can stand to read so much cr@p?

Face it. If someone has to follow a link to more cr@p to tell that it's not cr@p, then that's pretty cr@ppy.

You write a bunch of cr@p. Then you try to cover your tracks by saying I misunderstood you because I didn't follow a link to more cr@p. Who can stand to read so much cr@p?

Face it. If someone has to follow a link to more cr@p to tell that it's not cr@p, then that's pretty cr@ppy.