Why China keeps on lending Money to USA to fuel the War.Do they have a hidden Agenda?

Question

In my humble opinion China is the one who bennefitted the most in this conflict since 9/11.It became the Major Global Player in GEOPOLITICS.The USA and AL QUEDA are the major loosers.Russia north korea and Iran also benefitted from this conflict.
WHAT IS YOUR OPINION?????

Answer 1

Of course they have a hidden agenda. One day they'll ask for the money back, and we won't have it, and then we will be making computers for them.

Answer 2

China and other far eastern central banks have been propping up the US for years. They are the primary customers for US Treasury bonds, the instruments used to fund the government. They have a vested interest in purchasing these bonds, for one thing they are the most secure bond in the world, it props up their currency in relation to the dollar and the US is their primary customer, since the US is the LARGEST consumer in the world, thus it benefits other countries to ensure the US continues to consume.
China GNP is still less than half of the USA GNP. The benefit to the US of this relationship is that China has pretty much allowed the US to do what it wants in the Middle East with very little complaint.
Will this be detrimental to the US? More than likely but not for a generation.
Every nation has their own agenda.

I wouldn't get too concerned, in the 70's the arabs were going to buy us out, in the late 80's and early 90's the Japanese were going to buy us out. The economics of the situation are not a straight line. The arab threat was always unfounded, Japan's economy crassed and burned in 92 and still hasn't recovered. It is highly the overheated Chinese economy will collapse like Japan's before they truly become a threat.

Answer 3

China has come a long way in recent years, what with it's continued economic growth and recent entry into the WTO. It would seem that they currently have the US at a disadvantage, considering the lending that you mentioned plus the huge trade imbalance between the two countries, that being in China's favor. You are correct in assuming that they have an agenda. Considering that China plans further into the future than our own government, they may be quite successful in their nation.

China, much like the US and Russia, is a predator nation. They realized that this increased borrowing and huge trade imbalance will eventually break the US economy. Should the US try to default on the loans, China may use it as a reason for seizing US assets overseas or possibly as the justification for war. Considering the massive military build-up that China has been going through recently, it would seem that they are preparing for war.

Answer 4

I agree, that China is empowered by our crazy spending after 9/11. However, I believe Al Queda is not a loser after 9/11. The illegal occupation by the US of Iraq has fuled much hatred for the US; Al Queda is now recruting numbers higher than ever! They are now stronger. It's sad. I wish the US would actually help Iraq, what's with the huge embassy we are building the size of Rome. That looks real bad but ..I digress..

Answer 5

I can't fathom why you think Al qaeda has lost anything. More the Iraqi people, and the people in the US. The terrorists have gained 2 whole countries as recruitment areas where they didn't have influence before.
And among the winners you forgot to mention the oil companies. Did you see their profit figures? They don't only profit from the oil they sell, but also from the oil they can take out of the market.
And the chinese have their own interests at heart, just like anybody else. If the US are stupid enough to borrow off them, and they have it, why shouldn't they take the interest?

Answer 6

Why do you think? I have 15 items sitting on my desk right now. I looked at the bottom of each thing. The only thing that did not say "made in China" was the pencil holder my youngest son made me in School.

Oh I just checked the drawer, I found a pair of Scissors that said made in the USA...every thing else CHINA.

Answer 7

I don't blame China for lending money to the US for any war. That is not their intention or plan.

A lot of people in the US want to buy lots of stuff, priced really cheap - clothing, shoes, toys, electronics, you name it, it's for sale from China. A race to the bottom in terms of price. Just look in any department store or esp. a Wal-Mart -- you cannot escape it.

So all these goods get shipped to the US, and China collects US dollars from consumers and corporations. It's not the US government who sends dollars to China, it's consumers and companies.

China's central bank collects all these dollars and in turns, buys US Treasury bills, bonds and notes from the government as well as bond traders. China also buys Japanese bonds, and Euro-denominated bonds, too, but on a more limited basis.

China also re-invests by buying construction materials to build a massive infrastructure of power plants, highways, apartment buildings, seaports, hyrdoelectric dams, etc. (Shanghai alone has 25% of the world's tall construction cranes. At one time, China was buying more than 35% of the world's cement production. They are driving up the price of steel, copper and other basic commodities.) After all, China has a population of nearly 1 billion people, most of whom lived in the countryside, but now who are streaming into their cities to find work in factories. This has been going on since the 1980s, but only now is it 'news.'

China is buying US Treasury notes because the US represents the world's most stable currency and economy compared with the alternatives. Japan is just coming out of a recession, having been in a slump since 1991. Japan is a nation of savers, in part because their population is aging, and older people tend to save a lot more. The EU countries have a pathetic economic growth rate due to very generous social programs which makes it very expensive to build factories or make large new investments. So the US dollar is a much more safe investment for China.

China can't sell the US dollars quickly, otherwise they would dump the market and crash prices of their holdings. The US can't not sell to China because they have so much money available. It's a dance between 2 countries.

If anything, blame the US government for spending so much ($10 billion/month on Iraq & Afganistan) and all those tax cuts in the middle of a war. And consumers who are so bored with life and feel it's necessary to have all those cheap goods. And US politicians who don't have any b*alls to stand up to countries which don't practice free trade. The blame list is very long.

Russia's only major source of global power is that they have a significant nuclear capability. The government suffers from a lot of corruption, the economy is in bad shape, and the only major source of exports is oil and natural gas, which they gladly sell to Western Europe (nat gas) and China (oil.)

North Korea is a very poor country with a brutual dictator who cares nothing about his country's citizens. It is not clear whether Kim Il Jung wants attention on the world stage, or he wants guarantees that the US and South Korea and Japan will not attack or invade his country. It could very well be that he wants massive investment and aid for his country, and the nuclear card is his only card that he can play. At least we are not dealing with Isalmic fundamentalism and crazy mullahs.

I don't have the answer about Iran. There are a lot of highly educated people in Iran who think their president and ayatollahs are taking them down a very dangerous path.

It's a crazy and dangerous world out there, but we need a lot better understanding about each country. We cannot apply the same rules to each one.

Answer 8

I thought Japan was the country that was lending to U.S. Anyway a chinese fellow once told me that they will take over the world. Judging by his character, I'm not sure if you should take that seriously or not. There's been alot of books printed lately about the subject. One is called "China Inc". You can find them at the local book store.

Answer 9

Yeah homosexuals are trying to give China the new role in the world since they know the F*ucd up America

Answer 10

In 25 years you will be talking and writing like the people in China does now.