My two cents

I descriptively remember my Economics 102 professor back in 2013 asking the class if, “China buying tens of thousands of bonds from the US gov every month was okay or not”.

He then asked me specifically since I was always in the front of the class. I told him that I didn’t think there was a problem with it. After all, he should be teaching me, right? He never gave his opinion, but it was obvious by his scoff and body language that my answer didn’t agree with his opinion.

Today, I finally understand what my professor was asking and why it’s so important. The Yuan has gained 11% against the USD since Biden has taken office, and has risen since the war in Ukraine has started. As this war prolongs and inflation risies, the Yuan will continue to rise against the dollar, thus further raising our “indebtedness” to China causing our payments to cost more and more USD’s every month.

I get it now.