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Originally Posted by dvd316
Guess who is buying billions of $$ in US Bonds every year? China
Guess why they are? Because we are deep in a trade defecit with them so we have to give them something to offset it.
Why are we in a trade defecit with China? Because they manufacture many of the items we utilize today for much lower prices.
So... who needs who?
We kind of need each other, but its def. a recip relationship.
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Where exactly did I say that the US doesn't need China too?
But aside from that, it's important not to exaggerate the importance of the trade deficit. Remembering Japan is probably a good idea.