The interest the Chinese have in holding American dollars is that on the world market you can't buy oil unless you have dollars. We made an agreement with OPEC countries and others in the 70's that we would defend their sovereignty with our military if they would agree to only trade oil in dollars. This is how the US has maintained its position as economic leader of the world while all the time we quit making anything, mining anything, and of late growing anything beyond what we want to put in our gas tanks.
The petro-dollar situation is changing rapidly. When we talk about paying back the Chinese, what does that mean?? Printing up more and more bushel baskets full of green paper and giving that to them? We do not produce any goods or services that the Chinese need or want in any quantity that could possible offset the tremendous debt we owe.
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