According to President Trump, China has been using America as its own personal piggy bank. Is that true? I ask because on the surface, Americans receive products made cheap overseas in exchange for dollars. That’s a free market, right? Well, no it’s not. But to understand why, ask yourself these questions: Why does China even want US dollars? Why does China hold US dollars in reserve? Why does China buy US Treasuries with its excess dollars? And here is the big question for all Americans, if America exports dollars to China and the world the tune of $800 billion each year, meaning that $800 billion actually exit the fifty states destined for foreign accounts, don’t those dollars have to be replaced? Where do replacement dollars come from? Okay, now we’re thinking. Let’s get some answers.
Share this post
America, China’s Piggybank
Share this post
According to President Trump, China has been using America as its own personal piggy bank. Is that true? I ask because on the surface, Americans receive products made cheap overseas in exchange for dollars. That’s a free market, right? Well, no it’s not. But to understand why, ask yourself these questions: Why does China even want US dollars? Why does China hold US dollars in reserve? Why does China buy US Treasuries with its excess dollars? And here is the big question for all Americans, if America exports dollars to China and the world the tune of $800 billion each year, meaning that $800 billion actually exit the fifty states destined for foreign accounts, don’t those dollars have to be replaced? Where do replacement dollars come from? Okay, now we’re thinking. Let’s get some answers.