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"The real question is, Why does China keep refusing to let us "pay them back" no matter how hard we try? Whether or not we "pay China back" is completely under China's control; they can choose to get "paid back" every time any one of their T-securities matures -- but instead of keeping the dollars we try to pay them back with, they choose to exchange those dollars for new T-bonds, T-bills, and T-notes. "

Well said indeed.

Personal request, when can we expect an update of the "Times Interest Taxed" charts? I find it more and more interesting in light of Greece and Spain etc.

It made me laugh too. But I was wondering what China had to gain by scolding us. I figured they are always trying to establish themselves as an international player, and what better way to project that kind of mentality than to badmouth the world's favorite punching bag, perhaps second only to Israel.

I was looking for information on how the U.S. will pay China back and your article was top of the list, so I read it. I live in Beijing, as an American ex-pat, and I feel you have taken an enormously complicated situation and over-simplified it.

China holds on to the bonds because it is a major investment. They are literally banking on America being able to sustain it's own economy so they can buy goods manufactured here.

But, you neglect China's internal market. With a population of 1.5 billion people, half of who do not yet own modern conveniences (washing machine, refrigerators, a/c, a new car), the government offers small loans to rural people to purchase these, and their economy continues to grow, albeit at a slower pace than before. SIx percent growth in today's market is nothing short of a miracle, but they are doing it.

As one of America's biggest "investors" they have every right to comment on our inability to save any money at all, and to incur personal debt in the billions. They are actually trying to show us how individuals can help turn the economy around by paying down your personal debt, and save a portion of your monthly income.

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