Why is America in so much debt with China?

Question

It is suprising to me that if we are such a big superpower in the world that we would owe so much money to other countries.

Answer 1

They have bought a lot of the bonds issued by the Federal government, which gives them leverage in international trade negotiations.

The other major problem we as a country have with China is something called a trade deficit. Here's a quick handle you can use to understand the concept. You make a product and pay a dime for labor in China, I make the same product and pay a dollar for labor in the U.S., we both sell our product on the American market, and your import creates a 90 cent "deficit". Times that by the 25 years since Reagan stopped protecting our economic industrial base, and you have massive job loss in the American industrial sector and Companies leaving the U.S. for cheaper labor over seas. Tariffs kept the American market fair and even, added money to the budget, and worked well for 200 plus years in America. Since Reagan we are the only industrialized country on the planet who doesn't protect it's own industrial base. The effects are obvious, Ross Poirot was right, and the Dems and Reps are both at fault.

The Government, both liberal and conservative must either govern the people who elected them or work in the interest of corporate conglomerates and finish destroying the economic base of the U.S. The two objectives do not mutually exist together. Greed for a quick buck, or the long term security of our Country, should be an easy choice, unfortunately it's one our leadership refuses to acknowledge.

Answer 2

Bottom line, nobody in America wants to pay taxes. Politicians would rather borrow HUGE amounts of money from the federal treasury than to raise taxes.

China isn't the only country we have huge debts to. The debt is set in the form of treasury bonds. Essentially, China owns a good number of our bonds. Saudi Arabia, Great Britain, and many others own a lot of our bonds.

We won't be a super power much longer if we keep this financial shell game going on.

Answer 3

Most often it's because the costs of production in second- and third-world countries like China are lower and the amount necessary to ship goods to the United States jacks up the price considerably. We're in so much debt because we acquire so many goods this way.

Answer 4

Look at the average AMERICAN?

Debt-financed trips to the mall...people driving around luxury cars(and ain't got a house).

Our society is based on GROSS consumerism, and since we are ethically, morally, and culturally bankrupt, is it any surprise we are borrowing money from the Chinese to fund a war in IRAQ?

It's YOU and ME that are footing the bill...and the business majors in this country who's sole job is to separate you from your money as fast and efficient as possible.

SHOP till ya DROP...it happens to countries too!

Answer 5

that would be the free market economy. They're selling us to the highest bidder

Answer 6

Are we?

What are your sources?

Please post facts.

Answer 7

ROFLMAO!!!!
Try again, that on was too funny.