Turns Out China IS Lying About Everything

[jeff47]

40. To buy US debt, they have to get US Dollars.

They converted a pile of their currency into Dollars because we only sell debt in Dollars.

That drives up demand for Dollars and reduces the demand for their currency.

If a currency is squeezed by debt, it seems the money would be worth less.

If they can't sell the debt, yes.

If they can sell the debt, then no....because they aren't squeezed by debt. We aren't anywhere close to being "squeezed by debt" - that's why we're paying <2% interest, and negative interest on inflation-protected debt. "Invest $1000 and get back $990" and people are buying it.

Much like the "in hock to China" statements aren't true, "debt crisis" isn't true either. But it does tie the hands of anyone trying to do something about the economy while. It also helps to "shock doctrine" out social spending.

Although I'd always seen the 'yellow menace' as a mere racist meme that had been discarded, not a real factor with people.

I find it's in the back of the mind of a fair number of Tea Partiers.

That some groups feel the deficit is going to hurt them due to lower returns on investments, etc. So they don't care about austerity at this time.

Those goals appear contradictory.