Comment Comment by sonnyblarney It's the same thing as borrowing.US gov sells TBills, those TBills are bought by China.The transaction you described also translates government debt into currency, which China also sits on, so it's a kind of an exchange debt.So the US 'owes' China a gazillion dollars in services and stuff. One way or another. parent sonnyblarney 8 years ago
US gov sells TBills, those TBills are bought by China.
The transaction you described also translates government debt into currency, which China also sits on, so it's a kind of an exchange debt.
So the US 'owes' China a gazillion dollars in services and stuff. One way or another.