If the Chinese print their own money to buy our debt, then isn't it just a global printing war!

The Chinese buy our debt with dollars we send them for wide screen TV's and appliances "as seen on TV."

The Chinese peg their money to an undisclosed basket of currencies, but it is obviously heavily weighted with the dollar. In effect they are debasing almost in lock-step with the dollar.

Tom LaMar; No expert here, but from my brief study of monetary policy it seems that if the Chinese paper currency or electronically generated money is used, we should be keeping track of their GNP and at least base its valuation on that, and hold them to that valuation (that should be the way it's done anyway IMO). A nation's money supply ought to be in line, at some valuation level, with it's GNP, not floating, or relative to gold (which IMO should just be a commodity, free floating in it's value, and always a good hedge against inflation). If the Chinese print money to buy our country out, it's a crime to begin with anyway, and should not be legal. The Fed currently is lender of last resort, and should be doing all of the printing for now, as in any deficit year (which may continue until the present "administration" is replaced) as it's legal, but if Dr. Paul had his way, esp. after the hearing HR1207 received in the house recently, there of course would be no recognizeable Federal Reserve at all, save the obvious need for banking regulations, thereby making ALL the national debt null and void; perhaps even treasonous per the Constitution !

has a value that others, like us, pay for.

question: How does America pay its' balance of payment deficits with other countries? China in the past may have said that they wanted to be repaid in the form of treasuries, bonds, or dollars.

Does America just print money to pay these monthly deficits or do we use another form of payment?

This is a key question to know how we have paid up to now.
Whatever way we have paid in the past will not last much longer.

there is a difference between what we do and what they do. we borrow because we have a shortfall. they lend because they have a trade surplus and need to recycle that surplus into somethnig

War is therefore the balancing of the system by killing the true creditors (the public which we have taught to exchange true value for inflated currency) and falling back on whatever is left of the resources of nature and regeneration of those resources.

...
They must eventually resort to war to balance the account, because war ultimately is merely the act of destroying the creditor, and the politicians are the publicly hired hit men that justify the act to keep the responsibility and blood off the public conscience.

buying our debt, so have the Gulf countries. The Federal Reserve is now the largest buyer of our debt, in a process called Quantitative Easing.

The Fed creates trillions of phony dollars to buy worthless IOU's. The idea is to keep interest rates low. Without this scam interest rates would skyrocket and kill off whats left of the economy.

Unfortunately that is exactly what we need, the QE will cause more damange in the long run and ultimately come back to haunt us in the form of massive inflation.

Historically, devaluation has not worked, although ppl keep trying.

If you REALLY wanted to make some money, would YOU buy a vacant lot or a lot that has ALREADY been developed ? NUFF said.
Good people do Good deeds
Good people make it happen

China will not keep it up. They want to slow the decline of the dollar so they can get out. They do this by buying dollars to prop up its value. Its like paying off your credit card with another credit card.

Shotgun shells are the new gold!

You bring up a very good point. If the chinese are just buying up our debt with crazy inflated currency of their own, where does it end? And i would not call 90% of china's industrial output "productive" in any way. Is mass producing useless crap a sound base for the economy? the whole world economy really is nothing more than a house of cards with a few people trying to keep it propped up.

interesting. I think the US and China are working together I guess they could keep this goofy game going for another year.

We really need to go back to "start" and start all over again.
End the Fed is a good start.

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"God is at home, it's we who have gone out for a walk."
Meister Eckhart

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