Ok, so if China is investing in US stocks and treasuries why would the secretary of state be upset with them?
Ooh I love to dance a little sidestep, now they see me now they don’t-
I’ve come and gone and, ooh I love to sweep around the wide step,
cut a little swathe and lead the people on. Best Little Whorehouse in Texas
What.. you are expecting them to tell the truth all of a sudden? It is easier to divert attention and blame someone else..
The truth in the matter is a little more complicated… It is hard for any foreigner to invest in the Chinese markets, but it is quite easy for the Chinese to invest in the US markets.
The Chinese can sell to the US and then use that money to buy the means of production in the US. If the US sells to the Chinese, it is harder to buy the means of Chinese production (much is still state owned.. and run, and that which isn’t.. requires that it still be in Chinese control).
Also if their economy is taking off, I assume they have inflation,why would they buy US treasuries.
To hold the exchange rate down in their favor. You need a ‘reverse trade’ to offset the trade imbalance. The Chinese initially were buying treasuries only.. but the return on them is pretty poor so they have started to resort to buying stock & bonds in US companies.
Just read that they untied their currency from the dollar today, will that cause us inflation?
Where is the ref on them ‘untying’ their currency?
I had no idea that we import more from Canada than from China,interesting!
