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U.S. Treasuries: China's Dilemma

During a starvation period in China, there was no grains, the King said, "Why don't they eat meat?"

You want us to pay off our debt? How about our people on welfare to pay more taxes?

China is a developing country, people in any developing country, like Japan in the 70s, Taiwan in the 80s, they save more. China now is doing the same. They would save less when they became developed like us.

World War III: U.S. vs. China?

Economic war, yes. American will be the loser, because we spend too much, and they save to much.

Political war, yes. American will be the loser, because we have a highly corrupted Congress - they are still steal money, the pork programs when we have trillion deficit. China have a one party system, but vry effective. Their corruptions are in the low level that are much easier to corrct.

Conventional war, no. We did not fight with Russia, and we are not stupid to fight Chinese. We cannot win for sure.

Will China Continue to Buy U.S. Debt?

If we barrrow too much like WWII, we could only pay it back with the dishonest inflation - that is tax, equal tax for the rich and poor.

If you think Chinese don't know it, why they sold long US bond and replaced them with short US note lately? Why Clinton is asking if there is no problem about Chinese investing in US bond?

Should We Care If China Is Manipulating the Yuan?

There is no country that aggresively wants other countries to devalue its currency but US. And we raise the minimal wage, and send jobs to China, and then complaining trade inbalance. Create jobs? Why can we make our own clothe and grow our own tomatos? We will be in financial trouble till we do.