[eru]

Yes, the Chinese are hard at work to give Americans ever more manufactured goods for ever fewer green pieces of paper.

(Or to be more accurately, entries in a data base.)

[hcal]

I'm just an armchair economist, but I have read real economist argue that a strong US dollar limits the US's ability to repatriate it's manufacturing base. Also, I don't think China so much increases the dollar as it limits the growth of the Yuan in measure with technological and capital improvements that allow it to keep its export market strong and keep manufacturing business in China.

[eru]

Yes, that's essentially what I said. And I question whether getting stuff for cheaper (or free) is a bad thing for those downtrodden Americans.

[sp332]

It's so the value of the American debt held by China stays high, that way it's valuable and also hard to pay back.

[eru]

Hard to pay back? The Americans can print all they money they ever need, and the debt is denominated in that currency.

(Additionally, isn't the amount of government debt held by the Chinese only something like 10% of the total government debt?)