Quote:
Originally Posted by Andrewl
So really it was China as the ultimate benefactor of those cheques. So let me get this straight. The US economy is struggling and the US is in massive debt to Chinese bankers, so Bush cuts a bunch of cheques in order to stimulate the economy, and all the money end up right back in the hands of the Chinese bankers, and the economy still struggles and the US is is still in debt?
Andrew
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You missed one important step, we borrowed the money to cut the checks. China, Japan and the UK loaned us the money to write the checks, US consumers spend it on goods imported from those countries (primarily China and Japan) and they now receive interest on the loan, the principle to be repaid by some future generation of Americans. From the US position, how dumb does it get, from the lender side, difficult to get any better than that.