Hacker News new | ask | show | jobs
by TomOfTTB 5429 days ago
Its really not. If what you say was true they wouldn't still be actively buying U.S. Debt.

Their hesitation is they wouldn't get all their money back. If China pulled even 25% of its investments out of the U.S. the dollar would free fall. They wouldn't be able to cash out before most of the dollars value was inflated away.

China continues to buy our debt because they don't want the value of their current investment to collapse

1 comments

that's not the only reason, they also need to keep buying it for as long as we're a sizable portion of their export market. We still are, for now..