Saturday, February 12, 2011
Getting our dollars back
We send a lot of dollars to China in exchange for stuff. The Chinese have been lending those dollars back to us, and we send them back for more stuff, and then they loan them back, and so forth. Credit blossoms, we get stuff, the Chinese become our biggest creditor, etick, etick. The interesting question, of course, is whether that gives the Chinese power over us, or vice versa. Hard to tell, actually.
Anyway, the good news is that the Chinese are suddenly buying our stuff, which is so much better for everybody. Both we and they would be much better off if that number tripled again over the next few years.
7 Comments:
By 
Retardo, at
Sat Feb 12, 06:52:00 PM:
If they're buying our stuff, that just means they're turning stupid sooner than expected. I'm gonna call that a win.
By , at
Sat Feb 12, 09:43:00 PM:
How much of the increase is due to the soaring price of grain and other commodities?
Could it be they are not buying that much more, but are paying a lot more for what they do buy?
By 
Ray, at
Sat Feb 12, 11:37:00 PM:
Unlike the Japanese, the Chinese have no problems with the idea of conspicuous, over-the-top consumption.
By , at
Sun Feb 13, 06:33:00 AM:
2000 - 2006 GOP Congress:
exports go from $1 BIL to $5 BIL +500% over 6 years.
20007 - 2011 Dem Congress:
exports go from $5 BIL to $10 BIL +100% over 4 years.
By , at
Sun Feb 13, 08:34:00 AM:
I don't understand the drop during the last recession. Was there a lag and causality, or did the recession "cause" lack of exports?
By Dawnfire82, at
Sun Feb 13, 06:08:00 PM:
Well, the Chinese did take on a whole lot of dollars all of a sudden, which are reducing in value. Spend it if you got it?
By , at
Mon Feb 14, 10:29:00 AM:
Feeblemind nailed it. China is facing a potential total crop failure in their wheat harvest and are importing wheat like mad. Most of what you see in this graph is increased volume of commodities at increased prices.
