Comment by 01100011

This is, perhaps, a consequence of countries like China choosing to subsidize their manufacturing sectors at the expense of domestic demand. China subsidizes, producing cheaper goods, which are gobbled up by the west, leaving China w/ excess dollars that it then needs to park in US Treasuries, depressing lending rates and making it cheaper for the USG to run deficits. https://twitter.com/michaelxpettis is a big proponent of this sort of reasoning.