.
November 17th, 2009
01:19 PM ET

China may need to live with weak dollar

[cnn-photo-caption image=http://i2.cdn.turner.com/cnn/2009/LIVING/02/04/trillion.dollars/art.trillion.dollars.cnn.jpg caption="According to figures released by the Treasury department Tuesday morning, China held $798.9 billion in Treasury securities as of the end of September."]
Paul R. La Monica
CNNMoney.com editor

President Obama is in China this week meeting with that nation's leaders. Since China is the largest foreign owner of U.S. debt, I wonder if they are going to give Obama a free toaster.

According to figures released by the Treasury department Tuesday morning, China held $798.9 billion in Treasury securities as of the end of September. That's up slightly from August and just a hair below the $801.5 billion peak that China held in May.

So there's no way around the fact that China is bankrolling a major part of the U.S. government's stimulus efforts and financial bailouts of the past year.

Keep Reading...


Filed under: China • Economy • President Barack Obama
soundoff (2 Responses)
  1. Tim Gibson

    China only needs us to the extent that they rely upon us to purchase all the items they make and we consume. That alone is not enough leverage to imply that China really needs us. We are nothing more than the junkie relative who always comes around for a handout and we all know the day of intervention is coming closer and closer with each blink of the eye.

    What China will do if anything is gain an upper hand on the power wheel of America via ownership within our borders. We are the ones at the mercy of our wealthy neighbor. A lost super power in freefall.

    November 17, 2009 at 2:23 pm |
  2. Mike in NYC

    The US's days as an exporting superpower are long gone, and are not coming back. Exports are still high in absolute terms, but not at all as a % of GDP. High value items like cars and machine tools will not make up for the near total loss of other industries.

    It's hard to believe that US workers could compete with foreigners that make 5-10 times less than they do, no matter how far the dollar falls.

    November 17, 2009 at 1:49 pm |

Post a comment

You must be logged in to post a comment.