How did China get so much money? Why does U.S. owe so much?
I dont understand how the U.S. could be depending on China to let it keep spending. The U.S. wasTHE ECONOMIC POWER after world war II and the U.S. built many countries up after WWII. Not only that the U.S. loaned money and military equipment to many countries. So help me please understand how the U.S. is in debt up to its eye balls to of all places a third world country like China?!
Most of Chinese still live in utter poverty. So forget about that, HOW is China the big country that everybody owes money to now? How and where did it get so much?
carry outs and selling its rice to uncle ben
Slave Labor, They have armed guards standing in sweat shops to keep the people in check. Its a Dictatorship!!!
We import more of their goods than they import of ours... it's called an "imbalance of trade."
They have leaders who know math, and how to balance budgets. Meanwhile the President has to state balancing the budget and getting our of debt as a 'goal'. It has to do with the fallacy of Capitalism. The Capitalist will sell you the gun you are going to shoot him with to make the dollar.
In the 1990's, China was made a favored trade nation by the US which essentially opened China to a barrage of trading opportunities. In the ensuing years, China regularly exported far more than they imported. On the other hand, the US imported far more from China than they exported. Subsequently, China developedd a balance of trade surplus while the US developed a balance of trade deficit. The balance of trade deficit with China was paid for by US dollars and have accumulated over the years to a sum approaching one trillion dollars.
China was able to develope this enviable position because they have an abundance of cheap labor. US manufacturers and industries move their operations to China to take advantage of the cheap labor and less restrictive business environment. US consumers benefit ted by the influx of less expensive goods and services imported from China. Walmart is a great example of a Chinese distribution network. in the US. Unfortunately, many American jobs, factories and industries were destroyed in the process.
In the final analysis, China built an industrial infrastructure and accumulated huge amounts of dollars while the US dismantled many companies and paid for the superfluous Chinese trade with newly printed dollars.
It is a great tribute to the power of unchecked capitalism, but it is a sad time for the future economic prosperity of the US and its citizens.
there are millions of chinese restaurants through out the world all the tips received by the waiters are sent back to china.no one tips a mcdonalds waiter there is your answer
The U.S. had been spending so much. Just look at the Iraq War. Since the U.S. invasion of Iraq in 2003, the U.S. war spending had been about 280 Billion dollars (2 Billion dollars a week).
China is never involved in any war. So they have zero war spending.
Because everything was made in china.
Actually China owes more money to the US than the US owes to China. Trillions of dollars in defaulted bonds that China has refused to honor are owned by US citizens. China has defaulted on these bonds and has refused to pay the bond owners. Some of the bonds are still active and yet China still refuses to pay. The question is why does our government let China use the dollars to buy up America and get away with not paying their debt, and at the same time China down grades the US credit rating. This is a true but sad story that shows just how low we have sunk.
China also gets money from countries like Japan.
Americans in Poverty: 12%
Chinese in Poverty: 10%
Get your facts right
Where does China, America, people, business, every entity get 'Money' from...where does money originate? Today, all money is created by banks when they make loans. They simply make book entries saying, "you have a deposit with us." When you write checks against the new loan numbers you put new money intocirculation that never existed before. When the loan principal is repaid it is extinguished and no longer exists untilanother borrower comes along. This forces people, businesses, even a supposedly 'Sovereign and Free' nation like America with the authority to create money, into debt to obtain numbers to do commerce and to save. We are in economic servitude because Congress wrongfully farmed out its authority to create money to the special interest banking industry. This act switched our money from an evidence of debt-free wealth to an evidence of unpayable interest-bearing debt. The numbers 'money' should be created and spent not lent into circulation as a final debt-free earned payment for something the people produce that benefits all the people in place of taxation or borrowing.