January 24th, 2008

The $1.4 Trillion Question


</p> <blockquote><p> <span class="content comments_count_1 withoutphoto" ><span class="text" > </p> <blockquote class="comment_body comment_body1" ><p>Americans sometimes debate (though not often) whether in principle it is good to rely so heavily on money controlled by a foreign government. The debate has never been more relevant, because America has never before been so deeply in debt to one country. Meanwhile, the Chinese are having a debate of their own-about whether the deal makes sense for them. Certainly China&#8217;s officials are aware that their stock purchases prop up 401(k) values, their money-market holdings keep down American interest rates, and their bond purchases do the same thing-plus allow our government to spend money without raising taxes.<a href="http://r5.sharedcopy.com/7s3na#shcp1" > <sup>link &raquo;</sup></a></p></blockquote> <p> </span></span> &#8211; from <a href="http://r5.sharedcopy.com/7s3na">The $1.4 Trillion Question</a> via <a href="http://sharedcopy.com">sharedcopy.com</a></p></blockquote> <p>

Very long article but worth reading it from beginning to end!

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