I was just wondering why acountry like China would buy anothers debt and what good reason would they have for doing so when the economy of said country is in the dumps?
Answer by sweet-a-kins at 9:16 AM on Mar. 25, 2009
There are several reasons, from political to financial. America has often provided credit to developing countries that they later have to write off because the country has no way of paying it, etc.. But most countries do it because they want to earn the interest. In the case of China, I'm sure they like "owning" the U.S., and I'm also sure that they realize economics is cyclical and that being in the dumps now doesn't mean in the dumps forever.
Answer by Bezu at 9:03 AM on Mar. 25, 2009
Answer by michaux at 3:41 PM on Mar. 25, 2009