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I need an education in this. Why does China continue to but U.S. T-bonds?

I heard that the reason why China continues to buy U.S. T-bonds is to keep the U.S. dollar stable, since it is the center point of currency exchange. Is this true? If not, what is the reason?

Or if anything, can this be explained to me? I am confused.

Thank in advance

Answer Question
 
Anonymous

Asked by Anonymous at 3:11 PM on Apr. 13, 2010 in Politics & Current Events

Answers (4)
  • To help do there part in the progressives (Obama, Nancy etc..) attempts to collapse our economy.
    Carpy

    Answer by Carpy at 3:27 PM on Apr. 13, 2010

  • for the grammer police, I meant their, not there.
    Carpy

    Answer by Carpy at 3:28 PM on Apr. 13, 2010

  • China needs the US to be stable but they are not buying to help that. In fact right now China is messing with their dollar and that is devaluin gour dollar. Obama has asked them to go the other direction so to raise the value of our dollar but China says NO. LOL
    Really, it's a good thing for them because they get paid intrest and soon it will be a lot of interest. It's all a business move. No favors here.
    itsmesteph11

    Answer by itsmesteph11 at 5:13 PM on Apr. 13, 2010

  • Good explanation of what China is doing with currency here:

    http://www.npr.org/blogs/money/2010/03/podcast_why_chinas_central_ban.html

    The Planet Money team did an explainer that doesn't require a degree in economics.
    gdiamante

    Answer by gdiamante at 6:15 PM on Apr. 13, 2010

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