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What is with HN?!

Just because you disagree with someone doesn't mean you can exaggerate your point. China doesn't "own trillions of US national debt" like you suggest. Plus that debt is "given willingly, and gladly" to them because they purchase it. We are after all a capitalist system. If China is willing to pay more for US debt than Japan (who holds somewhere between 80% and 90% of the amount that China holds last time I check), than they should have the right to purchase it. Just because they are Chinese doesn't mean they don't deserve the same basic free market opportunities.

Perhaps we should be more concerned with the issue at hand instead of tangentially mentioning an issue we don't know a whole lot about in the hopes that no one will point out our mistakes.

My 2 cents.



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-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.


According to the US treasury China held 1.265 trillions of dollars of securities [1]. I't not many trillions, but it is quite a large number and if you follow the link, you'll see that it is also the largest holder.

[1] http://www.treasury.gov/resource-center/data-chart-center/ti...


"The largest foreign holder of U.S. debt is China, which owns more about $1.2 trillion in bills, notes and bonds, according to the Treasury." - http://usgovinfo.about.com/od/moneymatters/ss/How-Much-US-De...


I don't see where we disagree[1], but perhaps your argument is lost in the attempt to parody my post?

[1] Minus the "trillions" bit... see posts below. Perhaps "over a trillion" would have been a better phrase.


"China owns trillions of US national debt... this is debt that the leaders of our country have given willingly, and gladly pocketed the resulting cash. How is that any less treason than alerting our lenders that their systems have been broken into?"

A passage like this perpetuates the misconception that China owns a dangerous portion of US debt. It is stretching the facts of the case so it better supports your argument. They own 1.25 trillion, which is not "trillions". It is also less than either the Federal Reserve or Social Security trust hold and right around the last numbers I saw for private US holders. The phrasing you use to explain the transaction makes it seem like the US government shouldn't sell this type of debt to China. In your post you are claiming that the Chinese should have the same level of human rights as us but that we shouldn't provide them the same level of economic rights? Finally it is also disingenuous to say that our leaders "gladly pocketed the resulting cash". That implies some sort of embezzlement, which is just furthered by your comparison to treason.

Selling debt is a critical part of the economic equation for almost all world governments (yes, even China). It annoys me when people state that selling debt to China is somehow destroying this country or causing long term damage.




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