Yo, Gurn. I see where you're coming from. Without getting too involved I'll just offer you a simple go **** yourself.
Hey yo! I wouldn't want you to get too involved. Ya might stress out those little grey cells.
http://fpc.state.gov/documents/organization/99496.pdf
China’s Holdings of U.S. Securities: Implications for the U.S. Economy:
Given its relatively low savings rate, the U.S. economy depends heavily on
foreign capital inflows from countries with high savings rates (such as China) to help
promote growth and to fund the federal budget deficit. China has intervened heavily
in currency markets to limit the yuan’s appreciation. As a result, China has become
the world’s largest and fastest growing holder of foreign exchange reserves (FER),
which totaled $1.4 trillion as of September 2007. China has invested a large share
of its FER in U.S. securities, which, as of June 2006, totaled $699 billion, making
China the 2nd largest foreign holder of U.S. securities (after Japan).
Now why would both China & Japan want their currencies weak relative to the US Dollar?
Well...maybe it's because they know the amount of money they spend on T-Bills, is less than what they
would have to spend on transfer payments (ie, welfare to jobless) if their currencies were
stronger than the Dollar.
Is it possible China & Japan know their governments are more stable and their people are better off,
if their currencies are artificially weak versus the Dollar?
Is it possible they're right?
An MIT economist just noticed it. I suspect Chinese & Japanese have known about it for centuries.
http://econ-www.mit.edu/files/6613 (The China Syndrome - Net Effect of Trade with China
on US Economy)
But hey yo! No need to sweat the details, eh.
So I won't even quote the words of that late, great economist, Conway Twitty.
Party on dude!
