Letters to the Editor

April 17, 2013 7:58 PM

LETTER: Don't exaggerate China's claim on US

A recent letter to the editor insinuated that the U.S. borrows 40 cents out of every dollar (whatever that means) from China. Can we once and for all set the record straight: We don't borrow from China. The fact is that the Chinese hold an enormous amount of U.S. government bonds. However, they acquired these bonds with the cash they received from selling products to U.S. consumers. In essence, they have built up a substantial I.O.U or a "call" on future U.S. production of goods and services to balance the trade surplus they have accumulated.

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