[harpseal]

We're running a $100 billion deficit against China, china's running a deficit as well???? Then, who's making the money?

They are talking about the Chinese government spending money they do not not have on weapons development the internal government deficit is their way of funneling the wealth into their political leaders pockets.

[Cronos]

So, you're saying that the money going into china goes in:
a. The pockets of the leaders.
b. Weapons purchases.

For case b, they are buying from Russian and American, English, French, Swedish, Israelis, so the money we spend at Walmarts does end up, partly, in those arms financers hands.