America Has Become Subservient to China

[Phred42]

America Has Become Subservient to China
http://www.economyincrisis.org/articles/show/2101


As the U.S. tries to spend its way out of the worst economic downturn since the Great Depression its debt continues to mount. In Sept. a new nation became the largest foreign creditor of the country.

Now owning one out of every $10 of U.S. debt, China has surpassed Japan to become the largest foreign holder of U.S. debt. China officially owns $585 billion in U.S. debt after financing $43.6 billion in Sept., while Japan owns $537.2 billion in U.S. debt.

"This is a sign of the growing interdependence between the Chinese and U.S. economies, but also a sign of a relationship that is not healthy in the long term," said Eswar Prasad, an economics professor at Cornell University and a senior fellow at the Brookings Institution in Washington. "There are inconsistent policies on both sides of the Pacific that are working against a more flexible Chinese exchange rate and the reduction of China's large trade surplus. This is a problem for the United States."

Not only is China America’s largest foreign creditor, it is likely the largest creditor of the U.S. period. With china holding such an enormous amount of U.S. debt, it is unlikely that any entity in the U.S. is holding as much debt.

[RUMMYisFROSTED]

1. No, it hasn't.

Yet.

eta: punc

[valerief]

2. Most people in the world are subservient to someone. nt

[Greyhound]

3. Great, we have handed our mortal enemy a big, sharp knife and stand

with our throat bared, betting on their restraint.

Fucking brilliant.

Oh well, a small price to pay for having most of the world's billionaires.

All sheep share a common destiny.

[Raskolnik]

4. Interdependence is not subservience.

The U.S. economy is definitely interdependent with the Chinese economy, but that interdependence is a two way street.

[Mike 03]

5. This is old news. This has only been going on for, um, at least 3 years now.

Before China it was Japan.