Sunday, November 22, 2009
China and the US Dollar
China has been and continues to be “asked” to help pay for the debt incurred by the United States. Since China and United States do so much business, China has given a lot of their money to the United States only to see later that the US government, with it’s current policies, is headed towards inflation. Thus the US dollar because less worthy and the Chinese end up losing big because of the debt they paid to the US. The current Chinese government is not stupid. However I’d say they made a mistake for loaning the money to the US without first seeing how the new government under Obama is doing.