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Why do other countries buy other countries debt?

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?

 
Ibelongtojesus

Asked by Ibelongtojesus at 8:37 AM on Mar. 25, 2009 in Politics & Current Events

Level 14 (1,659 Credits)
This question is closed.
Answers (3)
  • They have SOME control over whats going on now. Last week Hillary Clinton had to go and talk to them about OUR economy and they said what THEY think should happen.....We don't want them to PULL their support so we may bend to some things they want.....hopefully NOT but it does give them some pull.

    Before this last 8 years when they have gave SO generously, they already OWN a large portion of Wall Street
    sweet-a-kins

    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.

    Bezu

    Answer by Bezu at 9:03 AM on Mar. 25, 2009

  • obviously so they have some control......over military bases, govt contracts, oil, etc.....
    we may have to start learning chinese language when they finally take us over and yes I think they will.......
    michaux

    Answer by michaux at 3:41 PM on Mar. 25, 2009