1) Tons of cheap exports and holding U.S. currency, causing it to be artificially higher than normal because that currency isn't being traded
2) Buying U.S. currency to keep it high in order to keep exports going and their economic boom going, further artificially inflating our currency
3) Loaning money to the U.S., which basically is like transferring debt. If a person gets a cheap loan and the money came from China, they owe the bank money, the bank owes China money, China is taking on the debt that way
4) And yes, finally, China actually buying U.S. debts including mortgage debt, packed and bundled by the deregulated U.S. financial markets.
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Date: 26/4/10 19:14 (UTC)1) Tons of cheap exports and holding U.S. currency, causing it to be artificially higher than normal because that currency isn't being traded
2) Buying U.S. currency to keep it high in order to keep exports going and their economic boom going, further artificially inflating our currency
3) Loaning money to the U.S., which basically is like transferring debt. If a person gets a cheap loan and the money came from China, they owe the bank money, the bank owes China money, China is taking on the debt that way
4) And yes, finally, China actually buying U.S. debts including mortgage debt, packed and bundled by the deregulated U.S. financial markets.