Why if China is going to take over position of US as economic power and US is going to collapse....?

Question

why does China as well as every other country in the world all keep buying US treasury bonds?

and how could China cause US collapse if it wanted to ? why would it want to?
Why would it want to tumble the whole stack of cards? could China do this even if it wanted to?

Answer 1

Right now, the U.S. dollar is the reserve currency of most nations in the world. The U.S. dollar is what many commodities are priced in, and in order to buy them, you need to acquire dollars. Right now, there is no other economy or currency that could replace the dollar as a universally accepted currency for use in trade.
It is not in China's, or any other country's, best interest to bring down the American economic system. We have by far the largest economy in the world, and we act as the largest market for China and many other countries in the world to sell their products. Any collapse of the U.S. economy would have huge repercussions throughout the rest of the world economy. This is in part why everyone keeps buying U.S. debt, in order to keep the cornerstone of the house of cards intact.
Even if China chose to, I doubt it could wreck the U.S. economy. China's first avenue to do this would be by ceasing to buy U.S. Treasury bonds. While this would be a huge imposition on the U.S. government, forcing it to offer higher yields on its new issues to make sure they are bought, it would eventually sell them all to other investors throughout the world. Interest rates in the U.S. would rise, perhaps drastically, and this could plunge us into a recession, or possibly a depression, but it would not cause a "collapse". Another action China could take would be to impose onerous import restrictions on goods sold by the U.S. although that would start a trade war, and since they sell more to us than we do to them, they would be disproportionately impacted.
While the U.S. is dependent on China to consume our debt, and to sell us cheap imports, China is also dependent on the U.S. to consume its products and fund its transition from an agricultural nation to a manufacturing one. If the U.S. was no longer available as a market, the factories in China would fall silent, and the people would rise up against the Chinese Communist Party. We need them, and they, in turn, need us.

Answer 2

The US and Chinese economy are intertwined. The Chinese need America to buy their stuff. America needs China to make our stuff. China has a vested interest in proping up the US dollar. China could, and couldn't topple the US. China wants to be the super power of the world. China wants to see a day when the US makes their stuff, but until then they need us. Complicated issue, right now the US is still on top, but one day soon the US could lose pace.

Answer 3

what a question. k let's take it by the numbers.
us bonds? opportunity of the moment, of course great investment. who cares about tomorrow? tommorrow everything might change. live for today. if chana "took over" everything would be different. live it up while you can.

how could they cause collapse? they don't need to. that is BS rhetoric from right wing republicans who can't think past their nose. we will cause our own collapse. we're doing it now.

whjat want to? territorial imperative. (look that up). they need the space and the resources. they need our farm land. breadbasket of the lremember? they need our oil. we have vast resources of untapped oil, and a hellava lot of tapped (then capped). and every other resource you can name. millions of acres of trees.

not to mention we have some dam nice weather here.

why want to.? china as a nation is three thousand years old. the us is johnny come lately. untold hundreds of nations and cultures have come and gone while china just sits there and grows. america is nothing to china, an upstart. a little over 200 years old. 1/15th as old as their nation. and they were around a day or two before that.

could they? anyone could. america is for sale. japan already owns LA. foriegn interests own our land, our businesses. they define our way of life. your president (not mine) recently borrowed trillions from china. what was the collateral? you and i.

are you old enough to remember the soviet union? it's gone. took no time to go. largest nation in the world pouf, out like a light. there's a lot of people got their eyes on this prize. china just the biggest dog on the block.

why is this? america is an anomaly. an oddity. somehow a bunch of rejects got their hands on the biggest prize and have been able to hold it. but that's in the past. back when we had unity. when americans were'nt quite so selfish. when we understood community. when children were raised by families instead of TV and street punks. when we were a nation of people not individuals.

we never locked our doors when i was a kid. summertime most people left them open if they had a screen. try that today. back then murderers and thieves, child molesters and deviants didn't have the same rights as an honest man. they got locked up. and prisons weren't nearly as full because people obeyed the law or else. and because regular folk weren't locked up for nonsense. insane people were treated (not very well, but....) in hospitals until reagun closed down mental health care, turned all the loonies out on the streets and now you have homelessness. another problem.

we need to get the criminals out of washington. and we need to start taking responsibility, not expect to be gifted with everything simply because we were born here. (go check out the immigration section for some real retards).

i could go on all night. i'll stop the rant now. hope i gave you some insight. probably not.

Answer 4

properly, in the beginning, if distant places imperative banks weren't procuring greenback debt none of you will possibly have a loan or a scholar loan. previous that, the greenback has gradually misplaced fee agains the Euro and maximum different international currencies. The international funds marketplace (like countless markets) is psychologically based. It would not degree the certainly fee of stuff contained in, or controlled by means of, a rustic. international capital is an contract. as a results of fact the U. S. turns into much less agreeable on the international point rigidity on the greenback will proceed to improve. the actuality is China ought to easily write off all its greenback holdings, decreasing its annual improve fee from 10% to eight%. although, chinese language capitalists are purely as grasping as American capitalists and that they do no longer look to be going to forego a cent of income till chinese language customers can discover the funds for to purchase as a lot cr*p as human beings at the instant do.