That pea being Black Eyed Pea member “Will.i.am.”. He repeated an oddity that keeps cropping up:
“If America really wants to make a difference, it should stop importing China’s products and pay back its debt“
Now the former is a personal choice, the latter is… well, it makes no sense.
America issues debt in the form of treasury bonds and China along with any other individual or institution on the planet can buy them. Perhaps too much paper is issued but given the low yields on current treasuries its obvious there’s plenty of demand to be a creditor.
The US dollar has depreciated against the Renminbi in recent years, moreso than the bonds yield. Effectively the Chinese government is subsidising the US but at no cost to the US government or taxpayer.
Restricting access to US debt would currently benefit China, not hinder it.
Tags: Debt, Renminbi, US Government
