China now owns $1.16 trillion of US debt.. According to cbnews "China today is the biggest buyer of US treasuries and owns alot more than previously estimated." Because the increase in Chinese holdings "their is a fear that Chinese investors might start raising their interest rates. If that were to happen it would slow America's economic recovery and increase Washingtons costs for financing the $14.3 trillion national debt."
This article is very important for many reasons, not only is it important for the government but its important for all the citizens. Since most of the jobs have been sent over seas to China for cheap labor I believe that they got very carried away and wasted way to much money. I believe that if they would stop sending jobs over seas then we wouldnt be in this debt that we are in today. Instead of the government having to give people unimployment big money companies for example Nike could bring jobs back to America and give the American people jobs that way they wont have to recieve unemployment money. But since we are so far in debt I think that this article is so important because most people live their lives and dont realize alot of stuff going on in the government. It wont be long until this issue will be effecting everyones lives, not only when you go to purchase a loan but also when you go to apply for a grant, there is no money to loan or give anymore because we are having to pay back countries like China before they raise interest rates.
Lets see what my classmates have talked about.
Victoria.
Brian.
Natalie.
William
Mora.
Kimberly
Randall.
Ian
Sources
http://www.cbsnews.com/8301-503983_162-20037535-503983.html?tag=cbsnewsSectionsArea;cbsnewsSectionsArea.2
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