China Involved in Debt Debate

by Sam Williford on May 6, 2011 - 8:45am

In an example of how the U.S. has forfeited its sovereignty thanks to poor policy, Chinese officials are now putting pressure on the U.S. government on how to shape the budget and manage debt.

More than half of U.S. debt is owned by foreign interests, with China being the largest of those foreign stakeholders with more than $1 trillion in U.S. debt. This accumulated debt is the result of our massive trade imbalance with China, which totaled more than $275 billion last year. These debt holdings give China massive leverage against our government and economy....

Full story:
http://www.economyincrisis.org/content/china-involved-debt-debate