American-Chinese Debt Loop

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Information American-Chinese Debt Loop

Title	:	American-Chinese Debt Loop
Lasting	:	15.27
Date of publication	:
Views	:	181 rb

Pronunce yuan more better
Comment from : JATWANG is my name

2:08 he meant that only dumb people who have squared head who buys US treasury bonds
Comment from : yassine waterlaw

The US dollar isn’t the US dollar?
Comment from : Des Tom

Given recent revelations about systemic hidden leverage in Chinese companies, all this sounds very Ponzi to me even if it may not have been intended as such
Comment from : Samson Soturian

Is it just me or the way the guy says “woo-an” is annoying It’s “Yuan” 😂
Comment from : K C

The only problem with this is that US debt is growing
Comment from : Johny Bravo

outstanding move
Comment from : MrNaufan

That’s how our bond market works and lower interest rate means less money being paid back so us govt benefits by narrowing at low interest Your dum govt bonds have a fixed yeild
Comment from : Mike DROP

You understand the Us govt doesn’t give China USA dollars for nothing!
Comment from : Mike DROP

USA has china’s money that we use in trade and is bussiness tat need CNY to pay manufacturer
Comment from : Mike DROP

I have a question--- he said that china prints Yuan and the use it to buy US Dollars in open market operation brWhy don't developing countries with current account deficit/crisis print their currency and use it to buy in open market operation to buy USD But they can't/don't do that WHY NOT ?????? anyone
Comment from : Akash Singh

The flim flam is real Fascinating
Comment from : Mimi Honey8

Quick question 🙋‍♂️ so does this mean the China gave the us money for the us just go buy stuff from them?
Comment from : Mailbaba Footprint

too long china lends usa money so their debt is cheaper and americans use this extra money to buy chinese goods the end
Comment from : Erick Lestrange

Very nicely explained thanks!
Comment from : Jayze Poudz

Folks r only peasants No rest for the wicked no elite Forget these losers and move the new world order forward Batteries U start leave others behind?
Comment from : Tablet Home

Wouldnt printing of Yuan lead to inflation? All countries can do this, print and buy USD
Comment from : Irina Danevska

What about inflation What about other banks being back stocks gold and also treasuries It's not just China, It's back and forwards the entire world no?
Comment from : Teqnkka

After 10 year, we are back to situation same
Comment from : auto lover@$&^$&^$

And when china cashes in the bonds?
Comment from : D K Keyz

Thanks a lot for your very clear videos can you pls explain the US - China debt situation we in our house and our friends can not understand this matter Why If USA owns a bigger amount of Chinas debt thanthe amount of US debt that Chinas owns why the """ ecuation """ has not being solve yet If You borrow 10$ from Me and I borrow 15$ from You in my mind only I am in debt with You for me the difference cancels inmediatly at the moment You lend me the 15$ we were talking about every body likes to have small debts apparently countries dont is it different with contries plus we hear rumors that the Chinese are not paying as they should pls if you can explain tihs Alberto
Comment from : Alberto Garcia

doesnt buying US debt increase the supply of dollars and further weaken the yuan?
Comment from : etf42

Good video
Comment from : Alen Paul

Can't watch it ugh Central Bank ok ok Cen F'ing A man Get on with it Spell out the words BEFORE the video
Comment from : Todd Thompson

the content is good but I can't get over all the repeating video would be half the length without it
Comment from : Sean Donnelly

Dude your handwriting is awesome
Comment from : Eric Downs

So this is how we got in debt!! Thanks for the detailed video I finally understood the reason brbrWell, about 65 of Americans are paycheck to paycheck It’s not that we don’t make enough $ It’s bc we spend more $ than we make It’s a trickle down effect Obviously it starts from the top down We have got to change this culture Live below your means, ppl
Comment from : Lucky Luke

China is so smart
Comment from : Curlygurl 83

It's just an international credit default swap The military becomes the insurance company
Comment from : Tory Slusher

They print Juan
Comment from : Deathless

Great video, how high demand for US dollar lowers interest rates for US government and US citizens
Comment from : Oj D

a hat and mustache! he sures know how to make learning fun! huge love from china! 🇨🇳
Comment from : Will Statmen

I think this video doesnt really focus on the important bit In economics, money is just a tool What a nation should seek is not (loaned) money but productivity, jobs and growth The important bnet effect/b here is that undervalued yan boosts chinese exports, which essentially moves unemployment from China to the US and other nations with a floating currency
Comment from : 5astelija

You print YUUAAAN
Comment from : Soul Shaman

In the long range it is unsustuinable for the US , and China knows it
Comment from : Bhokor

Looks like highly illigal, speculation to get dollars for ious
Comment from : Paul Romanowski

The question is what happen if they continue to buy US $ but stop buying US bonds ?
Comment from : Phil Keyouz

Who will take the Yuan & give them dollars?brEveryone is holding dollars
Comment from : M C

Its a good vid I just can't listen to him repeat himself over and over again
Comment from : cmac ctron

US treasury bill are no safer or more secure than dollarsbrThey are subject to the same inflationbrAnd when the US defaults (as it certainly will) the bonds will be as worthless as the dollars
Comment from : Texas Ray

Yuan (yu an) not wan
Comment from : Texas Ray

Americans love to spend money that they don't have
Comment from : Elbi

The guy in the video at 2:10 (wearing a hat) might be Arab Sheikh's
Comment from : Theja Roop

Is the yuan backed by gold or is it a fiat currency ?
Comment from : Ima laugh Ima cry

My confusion is the problems for China and America are not solved Whether America would pay off with Yuan? If not, How will China resolve foreign reserve problem? And for another thing, America needs to pay extra money for the US dollar debts So, it means America is trapped into debts
Comment from : Tina Jackson

let's not forget the dollars the chinese central bank buys with the yuan they print are also printed freely at will by the US central bank
Comment from : 东皇太一

CHINA BUYS THE US DEBTS BECAUSE IN THE entering of WTO ,it a pre requisteif you do not buy US debts use doller,you are not allowed to go in
Comment from : 东皇太一

Economy full of manipulation
Comment from : Muhammad M

So what does China central bank get out of this? i mean whats the point of doing so, buying a bunch of t-bills and lowering its yields, it just doesn't make sense I can only guess its Chinese government doing US gov a favour in exchange of some trading benefit, and the Chinese might think US will increase its rate anyway and so is the USD/CNY, so that they can sell the bonds and earn a spread
Comment from : Dylan ZHU

this therefore ruins good paying us manufacturing jobs, giving us citizens less money to spend relying on more debt which they cant pay back, therefore creating more public debt that these same citizens eventually can't pay back bec tax revenues will also be diminished if good jobs are lost and not created, ultimately resulting in the collapse of modern civilization like we are currently witnessing given the volatility and acceleration in the devaluation of the global markets Consumption is the fuel of this bullshit Bec if westerners slow consuming the crazy wheel of capitalism stops and the whole thing is ruined It doesn't help that wall st with the help of US bond holders such as the saudis the russians and the chinese hold our fates in their hands bec they are dumping us treasury bonds like crazy bec they are smart enough to know they've milked this puppy (US) for all its worth Every drip,
Comment from : Nick

So why doesn't the us just print it's own money interest free and not have to worry about paying interest back to china?
Comment from : Alex Partridge

Excellent basis to understand better Richard Duncan's The dollar crisis
Comment from : Lorenzo Marchetti

Yuan or some Shit
Comment from : John Rogers

They ought to at least Print 2 That's It
Comment from : John Rogers

Video is too long
Comment from : SurfingMaster999

Wow he's blaming Chna for USA debt problem Get the Treasury to stop selling debt in the MARKET so China won't have Treasuries to buy
Comment from : HuiChyr

c'mon the chances of that happening are yuan in a million
Comment from : Ali Ababwa

SALMAN!! The last part of your video is wrong!!!!! The US is an Autonomous Currency Issuing nation It can create dollars at any time A debt is not a true debt if it is denominated in a currency you can create at any time This is why US debt is default free!!!! This is why the Chinese are so willing to keep buying Treasuries!!! Modern Monetary Realism
Comment from : Aubrianne Scheldt

Not a wizard here, but when the Chinese hold so much US$, when do they determine the rate? Micro level if you owe too much debt to 'Sweet Lenny", he gets nervous your credibility starts to drop Perhaps China demands a higher rate What if the USA devalues their $ for competative reseans? What if they decide to do business with India and Vietnam rather than China? What if they put tariffs on China to bolster their own econ? What if USA create a false flag and rip the Chinese debt up?
Comment from : Billy Bob Mirango

+ one more effect - buying more 10 year bonds "flattens" the yield curve an thus depletes the difference between short term borrowing(for the bank) and long term lending(for the bank) an being so the banks are not so "willing" to lend because they don't reap the profit they usually could on "bigger" short-long term difference
Comment from : dominikb12

The incorrect pronunciation is really distracting for people who understand Chinese Yuan sounds more like yu (you) - en (like in the word end)not "won"
Comment from : rainydaymyc

@60fft It's a joke (buy one, get one free get it?)
Comment from : TreachMarkets

the chinese control the world xD Thanks a lot Sal!
Comment from : deniskatashkentskiy

let's not forget the dollars the chinese central bank buys with the yuan they print are also printed freely at will by the US central bank - the fed
Comment from : John Doe

@aswayb why don't u just fast forward the parts where he repeats himself for the benefit of first time viewers on the subject like me
Comment from : John Doe

@ Clint45s China already has control over a portion of America second only to Japan The time to wake up probably came and went, even if the troops came home tomorrow and all spending ceased its already too late what's happening right now is that they are trying to stop the boat from sinking by making the hole bigger so the water will get out faster and i think we all know how that is going to end All America can do is watch how the Yuan rises and the Dollar drops like a rock
Comment from : Tommy3632

DBCG Don't Buy Chinese Goods
Comment from : The Peter Dislike Show

Basically, China supports the Tea Party Interesting
Comment from : William Dukane

I'll try to answer my own questions: "Why are they piling up all those dollars?"- Initially, their goal was to build up their industries by increasing low priced exports so as to drive out competition - but now I think the reason is mostly political - China is a nuclear power and we owe it a lot of money - making it less likely that we will try to impose our way of running the world on China - As to final question re interest rates, google "sterilization bonds" and "china"
Comment from : Franklin8491

Wow this all made total sense not even joking You are my hero Mr Khan! Thank you
Comment from : Tucktasticationister

@Franklin8491 first people like horting money why do all the rich people wanna become even richer when they already have 100 of millions or more? second there you go again, if US government would do that people would go nuts Chinese wont because of the saving rather than spending mentality Even though the living condition should be better than what it is right now, peoples lives are getting better day by day, BECAUSE of the currency policy taken by the Chinese government
Comment from : L L

@daynvattah But what do the Chinese expect to do with more than a trillion dollars which they have already accumulated and continue to accumulate with no end in sight? - If the US government raised taxes so that we were running a surplus, and invested the surplus in Chinese bonds, people would think we were nuts
Comment from : Franklin8491

@Franklin8491 chinese are spending them, themselves they have been horting them for a long time because its just the asian mentality you save rather than spend
Comment from : L L

@insanemagicguy spend more and more wars, though the US has not declared war since 1941 (and a declaration of war voted by the Congress is required under the Constitution), but taxes are on the way up
Comment from : ITILII

@TreachMarkets buy enough dollars, get USA for free
Comment from : ITILII

I like the third guy with a bucked tooth
Comment from : Sumeet More

Man this is a great video Very clear and easy to understand the important message behind it I hope all the subscribers from my channel watches this video
Comment from : streetmoney21

This long winded repetitious explanation, leaves out some very important things, such as: Why are the Chinese doing this? - Why are they piling up all those dollars and letting the US government spend them rather than spend them, themselves? and What is the effect of the printing of vast quantities of their own currency by the Chinese (Its inflationary, so the Chinese borrow some of the printed currency back using "sterilization bonds" - which increases Chinese interest rates
Comment from : Franklin8491

So is it possible to buy yuan, get yuan free? (couldnt help myself)
Comment from : TreachMarkets

You don't need to repeat what you're writing while talking slowly; just write it
Comment from : Mr Pep Talk

Thanks, Sal I think I enjoy your videos on finance and economics more than any other subject It's nice to have some sort of solid understanding about what's going on and why when I hear someone offhandedly mention on the news that "Chinese is devaluing its currency" or "buying up American debt"
Comment from : Quinstol

Basicly, the US sells the paper aka US dollars in exchange for goods from other countries Most countries are very happy to sell cheap stuffs to the US So, it causes the US burden with trade deficit, and the US is no longer competitive in terms of manufacturing and price American people still enjoy consumption while the trade deficit is tremendously widening I don't know what will happen at the end of the day if China, S Korea, Taiwan, Japan, Singapore stop valuing the dollars
Comment from : amoxintubeu

@lianghaochen Yes, that's correct Korean money is called Won Chinese money is called Renminbi and measured in units of Yuan (and some others like Jiao, Fen etc) Renminbi is most widely distributed in terms of Yuan hence Chinese money is effectively called Yuan And I believe Sal is saying Yuan even if the pronunciation is being heard as Won He even wrote down Yuan on the screen if you notice it
Comment from : KingVikram

@ceresWar Why don't you just respect someones opinion? Not all people learn the same way
Comment from : JoesMonkeyLand

@PhilipK100 You fail :)
Comment from : MusicalAndTall

what do they print?
Comment from : staticbb

He's a good teacher, just wish he didn't repeat himself so much (eg "print yuan print yuan print yuan") I personally find it hard to listen through a whole tutorial when he continuously speaks in this manner But like I typed previously, he's a good teacher Also, he is very generous to provide this service Just some constructive feedback from the peanut gallery
Comment from : EJ Musik

it is pronounced "Yee-an"
Comment from : rax7

debt > actual money the monetary system is bound to collapse
Comment from : S0up3rD0up3r

I hope you've more videos on this topic on the way I've been looking for this sort of thing since 2008 - well done Sal I wonder does the US Government ever pay some or a proportion of their debts back at certain intervals and what effect that has on money supply from both China and USA? Again thanks for educating me :)
Comment from : Philip Kennedy

First comment! This makes more sense than ever Thanks PhilipK100
Comment from : Philip Kennedy