The $1.4 Trillion Dollar Question
Atlantic magazine January / February 2008 asks the $1.4 trillion question: Are we playing the Chinese for suckers, or are they playing us? Author James Fallows ponders the vast sum that the Chinese government has mostly placed in U.S. Treasury notes, an amount that increases roughly $1 billion per day. By his calculations, every person in the United States has over the past 10 years borrowed about $4,000 from the People's Republic of China. But there are potential future risks involved -- political and economic. And China has its own hopes. Chinese economic movers and shakers like Lou Jiwei and Gao Xiqing may in future play a far bigger role in U.S. economics than Americans would prefer. What will be the answer to the $1.4 trillion dollar question? Read more
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Posted, in Finance & Investment,International, by Paul Reist on February 1, 2008 | Permalink
