How did China get so much money? Why does U.S. owe so much?

Question

I dont understand how the U.S. could be depending on China to let it keep spending. The U.S. wasTHE ECONOMIC POWER after world war II and the U.S. built many countries up after WWII. Not only that the U.S. loaned money and military equipment to many countries. So help me please understand how the U.S. is in debt up to its eye balls to of all places a third world country like China?!
Most of Chinese still live in utter poverty. So forget about that, HOW is China the big country that everybody owes money to now? How and where did it get so much?

Answer 1

In the 1990's, China was made a favored trade nation by the US which essentially opened China to a barrage of trading opportunities. In the ensuing years, China regularly exported far more than they imported. On the other hand, the US imported far more from China than they exported. Subsequently, China developedd a balance of trade surplus while the US developed a balance of trade deficit. The balance of trade deficit with China was paid for by US dollars and have accumulated over the years to a sum approaching one trillion dollars.

China was able to develope this enviable position because they have an abundance of cheap labor. US manufacturers and industries move their operations to China to take advantage of the cheap labor and less restrictive business environment. US consumers benefit ted by the influx of less expensive goods and services imported from China. Walmart is a great example of a Chinese distribution network. in the US. Unfortunately, many American jobs, factories and industries were destroyed in the process.

In the final analysis, China built an industrial infrastructure and accumulated huge amounts of dollars while the US dismantled many companies and paid for the superfluous Chinese trade with newly printed dollars.

It is a great tribute to the power of unchecked capitalism, but it is a sad time for the future economic prosperity of the US and its citizens.

Answer 2

The U.S. had been spending so much. Just look at the Iraq War. Since the U.S. invasion of Iraq in 2003, the U.S. war spending had been about 280 Billion dollars (2 Billion dollars a week).

China is never involved in any war. So they have zero war spending.

Answer 3

If we had all our chips called today we would no longer be america as we owe too much money but on the other hand anything bought in the country known as america we could call in the law that would make it ours, But to answer your question ::: You can not borrow on what you do not have and we spend more money than we have and that is the simple answer.

Answer 4

shall we supply them the Social protection have self belief Fund for collateral. Oh whoops - that doesn't exist both depending on the extra thoughts extra to the question - I now propose that we go back each and each of the stuff we offered from them over the purely appropriate ten years for finished credit. And through the way - to each body who says screw China - even if if we pay off them 0 - all they ought to do is to end paying for new debt necessary to finance the deficit - then its us who're screwed because if no human being loans us money then taxes would ought to bypass up very heavily. we are in a multitude.

Answer 5

They have leaders who know math, and how to balance budgets. Meanwhile the President has to state balancing the budget and getting our of debt as a 'goal'. It has to do with the fallacy of Capitalism. The Capitalist will sell you the gun you are going to shoot him with to make the dollar.

Answer 6

there are millions of chinese restaurants through out the world all the tips received by the waiters are sent back to china.no one tips a mcdonalds waiter there is your answer

Answer 7

Slave Labor, They have armed guards standing in sweat shops to keep the people in check. Its a Dictatorship!!!

Answer 8

carry outs and selling its rice to uncle ben

Answer 9

We import more of their goods than they import of ours... it's called an "imbalance of trade."

Answer 10

corruption, basically