We send China USD, they send us cheap stuff. They have to do something with all that money -- burn it for heat or buy something in USD, like government debt or gold or real estate or stocks, etc.
The premise of the article seems to be that even if they buy something other than US Debt, the seller will use that money to buy US Debt, but who's buying US debt other than the Federal Reserve?
7 posted on 08/07/2011 12:19:51 PM PDT by RagingBull
(Talent does what it can; genius does what it must)