Please read this article:
This article discusses recent "threats" from China to the United States.
To make a long story short China has "pegged" their currency to the dollar. This is extremely wrong and is partially responsible for the increase in the trade deficit we have with China.
At the same time China is buying US debt each and every year. China (and Japan) own a huge amount of US debt. China is now threatening to "dump" the debt they hold onto the market. If China does this it will have a large effect on the US, it will:
1. Make the dollar fall even further (It is already at record lows)
2. Increase interest rates in the US. This would happen because of the huge sum of treasuries
being introduced to the market.
3. Most likely put additional stress on the US housing market in a time when it is already under
I am sick and tired of watching Democrats and Republicans in Washington ignore our current problems.