Home
Forums
New posts
Search forums
What's new
New posts
Latest activity
Members
Current visitors
Log in
Register
What's new
Search
Search
Search titles only
By:
New posts
Search forums
Menu
Log in
Register
Install the app
Install
Home
Forums
Brown Cafe Community Center
Current Events
President Trump
JavaScript is disabled. For a better experience, please enable JavaScript in your browser before proceeding.
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an
alternative browser
.
Reply to thread
Message
<blockquote data-quote="Jones" data-source="post: 2945273" data-attributes="member: 4805"><p>Our trade policies with China have exactly zero to do with either one of those things. I'm not sure why you think they are related. Instead of giving us any leverage over China's domestic policies our trade deficit with China is actually a <a href="https://www.thebalance.com/u-s-china-trade-deficit-causes-effects-and-solutions-3306277" target="_blank">growing problem for us</a>:</p><p></p><p><em>China must buy so many U.S. Treasury notes that it is now the second-largest lender to the U.S. government. Japan is the largest. As of April 2017, the <a href="https://www.thebalance.com/u-s-debt-to-china-how-much-does-it-own-3306355" target="_blank">U.S. debt to China</a> was $1.092 trillion. That's 27.9 percent of the total <a href="https://www.thebalance.com/what-is-the-public-debt-3306294" target="_blank">public debt</a> owned by foreign countries. Many are concerned that this gives China political <a href="https://www.thebalance.com/leverage-investing-and-business-3306199" target="_blank">leverage</a> over U.S. <a href="https://www.thebalance.com/what-is-fiscal-policy-types-objectives-and-tools-3305844" target="_blank">fiscal policy</a>, since it could call in its loan. </em></p><p> <em>(Source: "<a href="http://www.treas.gov/tic/mfh.txt" target="_blank">Major Foreign Holdings of Treasury Securities</a>," U.S. Treasury.)</em></p><p><em>By buying Treasurys, China helped keep U.S. <a href="https://www.thebalance.com/how-are-interest-rates-determined-3306110" target="_blank">interest rates</a> low. That helped fuel the U.S. housing boom, which lead to the <a href="https://www.thebalance.com/subprime-mortgage-crisis-effect-and-timeline-3305745" target="_blank">subprime mortgage crisis</a>. If China were to stop buying Treasurys, <a href="https://www.thebalance.com/when-will-interest-rates-go-up-3306125" target="_blank">interest rates would rise</a>. That could throw the United States and the world into recession. But this wouldn’t be in China's best interests, as U.S. shoppers would buy fewer Chinese exports. In fact, China is buying almost as many Treasurys as ever.</em></p><p><em>U.S. companies that can't compete with cheap Chinese goods must either lower their costs or go out of business. Many businesses reduce their costs by <a href="https://www.thebalance.com/how-outsourcing-jobs-affects-the-u-s-economy-3306279" target="_blank">outsourcing jobs</a> to China or <a href="https://www.thebalance.com/india-s-economy-3306348" target="_blank">India</a>, which adds to U.S. <a href="https://www.thebalance.com/what-is-unemployment-3306222" target="_blank">unemployment</a>. Other industries have just dried up. <a href="https://www.thebalance.com/durable-goods-orders-report-3305739" target="_blank">U.S. manufacturing</a>, as measured by the number of jobs, declined 34 percent between 1998 and 2010.</em></p><p> <em>As these industries declined, so has U.S. competitiveness in the global marketplace. (Source: "Employees by Industry," <a href="https://www.thebalance.com/bureau-of-labor-statistics-3305992" target="_blank">Bureau of Labor Statistics</a>.)</em></p><p></p><p></p><p>Plenty of people care deeply about NK's human right abuses in addition to their nuclear program, the fact that we haven't done more up til now is largely because because of China.</p></blockquote><p></p>
[QUOTE="Jones, post: 2945273, member: 4805"] Our trade policies with China have exactly zero to do with either one of those things. I'm not sure why you think they are related. Instead of giving us any leverage over China's domestic policies our trade deficit with China is actually a [URL='https://www.thebalance.com/u-s-china-trade-deficit-causes-effects-and-solutions-3306277']growing problem for us[/URL]: [I]China must buy so many U.S. Treasury notes that it is now the second-largest lender to the U.S. government. Japan is the largest. As of April 2017, the [URL='https://www.thebalance.com/u-s-debt-to-china-how-much-does-it-own-3306355']U.S. debt to China[/URL] was $1.092 trillion. That's 27.9 percent of the total [URL='https://www.thebalance.com/what-is-the-public-debt-3306294']public debt[/URL] owned by foreign countries. Many are concerned that this gives China political [URL='https://www.thebalance.com/leverage-investing-and-business-3306199']leverage[/URL] over U.S. [URL='https://www.thebalance.com/what-is-fiscal-policy-types-objectives-and-tools-3305844']fiscal policy[/URL], since it could call in its loan. (Source: "[URL='http://www.treas.gov/tic/mfh.txt']Major Foreign Holdings of Treasury Securities[/URL]," U.S. Treasury.) By buying Treasurys, China helped keep U.S. [URL='https://www.thebalance.com/how-are-interest-rates-determined-3306110']interest rates[/URL] low. That helped fuel the U.S. housing boom, which lead to the [URL='https://www.thebalance.com/subprime-mortgage-crisis-effect-and-timeline-3305745']subprime mortgage crisis[/URL]. If China were to stop buying Treasurys, [URL='https://www.thebalance.com/when-will-interest-rates-go-up-3306125']interest rates would rise[/URL]. That could throw the United States and the world into recession. But this wouldn’t be in China's best interests, as U.S. shoppers would buy fewer Chinese exports. In fact, China is buying almost as many Treasurys as ever. U.S. companies that can't compete with cheap Chinese goods must either lower their costs or go out of business. Many businesses reduce their costs by [URL='https://www.thebalance.com/how-outsourcing-jobs-affects-the-u-s-economy-3306279']outsourcing jobs[/URL] to China or [URL='https://www.thebalance.com/india-s-economy-3306348']India[/URL], which adds to U.S. [URL='https://www.thebalance.com/what-is-unemployment-3306222']unemployment[/URL]. Other industries have just dried up. [URL='https://www.thebalance.com/durable-goods-orders-report-3305739']U.S. manufacturing[/URL], as measured by the number of jobs, declined 34 percent between 1998 and 2010. As these industries declined, so has U.S. competitiveness in the global marketplace. (Source: "Employees by Industry," [URL='https://www.thebalance.com/bureau-of-labor-statistics-3305992']Bureau of Labor Statistics[/URL].)[/I] Plenty of people care deeply about NK's human right abuses in addition to their nuclear program, the fact that we haven't done more up til now is largely because because of China. [/QUOTE]
Insert quotes…
Verification
Post reply
Home
Forums
Brown Cafe Community Center
Current Events
President Trump
Top
