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Originally Posted by octothorp
So what's the deal with the US and their trillions of dollars of debt... Is this something that is likely to come back and bite them at some point, or can they simply continue to spend without regard for this figure? I think I read something about China trying to buy up US debts from other countries in order to attempt to become a greater US creditor, but I don't really understand the logistics in doing so.
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I believe the idea is that for China, the largest supply economy in the world, to be most secure while they grow their own consumer economy, is to tie themselves to the largest consumer economy in the world, and the most resilient, the US economy.
The more American debt and currency china holds, the easier they are able to sway American financial markets and policy. The more integrated, the better, until such a time as they can comfortably utilize their own consumer markets.
High integration in the American economy is also a solid and efficient means of protecting their Energy supply.