China's US debt stake tops $1.3 trillion

[anilindia]

what is the average rate of return of these investments....

 

[Chinese-Dragon]

what is the average rate of return of these investments....

For Treasury Bonds? LOW.

The whole point of Treasury bonds, is that they are low risk + low return.

That's why we should be buying up assets all over the world instead. And we are doing that too. We have bought land in Ireland and Ukraine, gas fields in Kazakhstan, resources all over Africa... Hell, much of the infrastructure in Britain is now owned by China.

Even Manmohan Singh is pulling in massive Chinese infrastructure work into your own country.

 

[djsjs]

to buy US debt is the last ditch.we kept too much US dollars in hand, it is devaluating every day so we must invest of spend as much as we can.

 

[hari sud]

Kiss goodbye to that $1.3 trillion with the American government. It will never be paid back.

US has more than that in Foreign Direct investment (FDI) in China.

It is overconfidence of China that US is dependent on her for cheap imports. Any country in Asia can replace China's exports to US. All they need is three years and that FDI which now goes to China.

All it would take is a few times more US naval ships or aircrafts stopped or intercepted by China in international water or international airspace. The diplomatic row would become a military row. Then the US would know that US has in last twenty years contributed to China's military rise.

China is much worst enemy than Soviet Union ever was. Remember Korean war where 29,000 US troops died and 400,000 injured. Name a single soldier who died by a bullet fired by Soviet personnel. So why this love affair with Chinese goods when rest of Asia can make these goods as easily as China can make.

Moral of the whole story is that China and US friendship and economic plan is completely unnatural. Sooner US gets out of it sooner China could be controlled.