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<blockquote data-quote="Next Day Err" data-source="post: 6075684" data-attributes="member: 107379">The trade imbalance isn&#039;t an emergency. They get money, we get the products. China buys U.S. Treasuries. There&#039;s a benefit to the United States in the stable exchange rate we have with China which comes from the Chinese buying Treasuries. Not to mention they help us by providing loans to us. We get to fund government services without having to tax the crap out of people.Both countries are better off. You can&#039;t punish your way into prosperity. Ask Napoleon or Adolf Hitler. We&#039;re not going to conquest our way into an even better way of life.<h3>The Cycle of International Trade</h3>
<ol>
<li data-xf-list-type="ol">U.S. imports more from China than it exports → China accumulates dollars.</li>
<li data-xf-list-type="ol">China needs a place to invest those dollars → It buys U.S. Treasuries.</li>
<li data-xf-list-type="ol">Buying Treasuries keeps the yuan stable → This helps China maintain its export-driven economy.</li>
<li data-xf-list-type="ol">The U.S. benefits from cheap borrowing → It can fund government spending more easily.</li>
</ol>Hope this helps illustrate why it&#039;s not all doom and gloom to have trade. Even if it&#039;s not perfect.By the way, we stole plenty of technology from Great Britain and Europe since before our economy was even beginning the industrialization process.</blockquote>

[QUOTE="Next Day Err, post: 6075684, member: 107379"] The trade imbalance isn't an emergency. They get money, we get the products. China buys U.S. Treasuries. There's a benefit to the United States in the stable exchange rate we have with China which comes from the Chinese buying Treasuries. Not to mention they help us by providing loans to us. We get to fund government services without having to tax the crap out of people. Both countries are better off. You can't punish your way into prosperity. Ask Napoleon or Adolf Hitler. We're not going to conquest our way into an even better way of life. [HEADING=2]The Cycle of International Trade[/HEADING] [LIST=1] [*][B]U.S. imports more from China than it exports[/B] → China accumulates dollars. [*][B]China needs a place to invest those dollars[/B] → It buys U.S. Treasuries. [*][B]Buying Treasuries keeps the yuan stable[/B] → This helps China maintain its export-driven economy. [*][B]The U.S. benefits from cheap borrowing[/B] → It can fund government spending more easily. [/LIST] Hope this helps illustrate why it's not all doom and gloom to have trade. Even if it's not perfect. By the way, we stole plenty of technology from Great Britain and Europe since before our economy was even beginning the industrialization process. [/QUOTE]

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