Can anyone explain how China had the funds to lend 1.5 trillion to US, billions to Ecuador and others?
Yet we read that China's soil is polluted, the air is polluted.
Did they withhold the money for their own country?
Or how did they have so much money to lend other countries?
Are they far better off then?
Some amazing, interesting, helpful answers here.
Thought I'd leave it for people to read for a while so those who
also wonder could read what you wrote.
- Uncle JoeLv 77 years agoFavorite Answer
The biggest part of the explanation is suggested by some of the things you pointed out. A country like China that is willing to inflict total mayhem on the environment has no problem amassing large sums of money. The Chinese burn coal in power plants with pollution that has not been allowed in Canada or the U.S. for many years. That makes it easy to generate electricity very cheaply, which lets factories run cheaply so that goods can be manufactured cheaply and exported at great profit.
The Chinese government is communist, and whatever they order the population to do is done no matter whether the people like it or not. That allows a great many financial savings, but at great cost to humanity.
One good thing that I can say about the Chinese in general is that they are willing to live more modestly than are Europeans, Canadians or Americans. That has allowed the savings rate to be good in China. That is changing, though, as the new middle class in China wants to have the material goods they know the rest of the world enjoys.
Another very large savings for the Chinese government is the relatively small military budget, especially compared to the United States. The Chinese navy would not be adequate to patrol the Canadian/U.S Great Lakes, let alone the world's oceans. As the Chinese government tries to become an actual "superpower", they will encounter expenses unlike anything they've ever experienced.
In all honesty, we must admit that much of the Chinese economic success has been the result of plain and simple theft. They steal technology and violate patents with almost no restraint at all. Because countries like the U.S. still make lots of money from cheap Chinese imports, very little is done to stop the Chinese theft of intellectual property.
EDIT: I think people should keep in mind that the huge debt the U.S. owes to China is not nearly as important to the U.S. as it is to China. The debt is secured by nothing more than the U.S. promise to pay back the loans, which are secured by bonds. There is nothing China can "repossess" to get their money back. If they ever were so foolish as to "dump" the bonds on the world market, the U.S. would be hurt a little, but the Chinese would be hurt massively due to the large declines in their ability to export things to America.
In my American opinion, the massive U.S. debt is truly immoral. I do not approve of it. We have lived beyond our means for a long time now. Take a look at the recent news stories about the money our government wastes, such as over 50 Million dollars in a couple of years for damn "conferences" (holidays!) for just one federal agency. Our government has wasted money in ways and to degrees that I think really have been immoral. Even though it has been wrong, it has not put us in nearly as precarious a position as the people who have loaned us so much money.
I recall a saying about banks loaning money to people.
When a bank loans a person 10 THOUSAND dollars,
the person who borrowed the money worries a lot until the money is paid back.
BUT, when a bank loans someone 10 BILLION dollars,
it's the bankers who worry a lot until the money gets paid back.
China has more reasons than the U.S. has, a lot more,
to worry about the money the U.S. has borrowed from China.
If the U.S. goes bad on the debt,
that would be much worse for China than for the U.S.
- 7 years ago
The Simple Answer: Chinese government is cruel, but genius.
The Complicated answer: Okay, So explaining this is going to force me to give you some relative figures:
1. Global Growth rate: U.S.As current growth rate is sitting at around 2.4% (Zimbabwe is higher(2.7%))
France has a 0% growth rate and the U.K is sitting at 1.2%.
China? Well China currently sits on a growth rate of 8.7% more than the next 3 fastest growing countries combined. On top of that in 2011 they intentionally slowed there own growth in the fear of hitting a peak, they slowed it from a massive 16.2% in 2010.
2. Population: It is obvious why this helps, to give you an idea, if you draw a circle around China and India, there are more people in that circle than the rest of the world combined.
3. Management: During the recession of 2008-2009, the majority of the 158 countries in the world went into negative growth, at this time China was growing at 11%.
4. Food Production: They are the largest producers of rice, they produce more rice than most continents do on a whole, rice is the staple diet of the world other than corn.
5. Work: This is the final reason, if you are a person in China, you do not strike, you do not complain, and you do not quit, you work, hard.
Also you should understand that they lent 1.5 trillion, which in their currency(they intentionally keep it weak for exporting goods at a cheap rate), is a minuscule amount compared to their national budget.
Those are the reasons China is in a good spot right now for becoming the top country economically globally.
Hope this answered your question.
- 7 years ago
they are better because they have the highest speed growing economy than any country of the world and remember they are the second in having a huge economy so why cant they 1.5 trillion is not a huge money for a country like china then also some places of china are polluted just like how the usa badlands are polluted and not china but all more industrialized countries are polluted because of the industrial emissions so don`t be that much to understand the books you red try to read more books that will tell you more about world nature than political books which hide the truth by saying china is polluted the truth is that all countries having many industries are polluted and also all countries have polluted soil and better soil remember they are number one in producing rice, they are also among leading countries in agricultural production and the last thing is that openly they never seek food assistance from any country of the world so try to be wise by reading more books-nice daySource(s): Google/Chinese agricultural production, china map on atlas / also even in Google Google/world pollution summit results and how to reduce yahoo /world news on economy( also google /world news on economy and bussines)
- RaynLv 57 years ago
Well... look up how money is created and then think on this question. It's leverage, China can just make more imaginary numbers to lend to us for imaginary pieces of paper. We could call them on it and say "You're money's worthless" but of course they would just say the same thing...
Then the whole tower falls, and everyone is worse off.
On a serious note though, in China all assets belong to the Government. In America... that's not necessarily true. We have enough ASSETS to cover the debt, for sure.
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- 7 years ago
China had smarter Leaders, they regularly exported far more than they imported. On the other hand, the US imported far more from China than they exported. Cheap labor more profit.
Add Obama who debt hole dug deeper than George W. Bush's in less than half the time. Obama will have added a full $5.823 trillion to the debt," he said. "Obama cannot blame his predecessors. By his policies alone ... Obama just increases the national debt day by day
He is nuts enough even to think China a Communist country is our friend.
- Anonymous7 years ago
China manufactures a huge range of products, that are exported to countries all over the world, and, although they have to import some raw material and other products, they export far more than they import. So their balance of payments are very much in their favour. As they have been doing this for many years, they have been able to build a massive surplus of funds.
- aharonLv 44 years ago
Be happy for whatever you get and don't whine. In case you are quite in desperate need and have a fund crunch to control the remedy operations if so which you can quote your requirement and donations will obviously come. There's no crunch of excellent samaritans who upward thrust to the social gathering. Whining and evaluating your nation's misfortune with that of a further, just for the sake of soliciting support looks utterly inexpensive.
- Anonymous7 years ago
They're hiding more than one "dirty secret".
Did you know their currency is backed almost entirely by unsold and UNSELLABLE real estate?
The game goes like this:
-- The govt backs construction of an opulent condo skyscraper.
-- Then, it values each square meter at, say, US$500.
-- It uses that "collateral" to back its yuan, then uses those yuan for an infrastructure project, such as a highway and interchange that make previously-useless farmland look like prime real estate.
-- They then build yet another opulent skyscraper and the process goes on.
The problem? NONE OF THE CONDOS ARE SELLING!!!
In fact, if the govt had to sell all their vacant buildings at auction -- with no reserve -- it probably would sell for more like $20 or $30 per square meter. Far from $500 they're claiming it's worth in monetizing the yuan.
- MLv 67 years ago
Not sure why they keep lending the US money, except to buy us.
They've already bought every politician in Washington.
- Hugh JassLv 67 years ago
As China owns the usa they are in effect simply circulating money within their own economy.