Quote:
Originally Posted by Slava
While there no doubting the power and influence of the american consumer the export portion of Chinas economy is a mere 7% of its total. So while that is significant, its pretty clear that the majority of their economy is not based on the demands of the US consumer and their spending prowess.
|
This is why I wonder is if this debt is actual debt or just funny debt.
I just find it hard to believe that China has these Trillions of dollars sitting around waiting to buy US T Bills. If they do then the world is in serious trouble when every major democracy is running deficits.
I am in firm belief that the US is printing money and applying that to the debt - and likely has been for a while. With other countries that would spell doom, but when your currency is the global standard, it doesnt hurt as much.
On a much smaller scale, but even with Canada. Has Canada determined the US is just printing money and as such Ottawa is just printing money and they record it as a debt, but its owed to no one.
Example, some of the biggest companies in Canada have a market cap of the same amount of deficit that the Canadian govt will run - 50 Bil - and with every other company or bank in the world, I find it difficult to believe that some of them have this free capital lying around so much so that they can borrow it to Canada. And its not just Canada, Canada is small potatoes when it comes to stimulus spending, where is Germany/France/UK etc getting money for this Stimulus. China cannot be buying up all the worlds debt can it?