China

This may be the DUMBEST statement ever written on the internet! CHINA IS LENDING US MONEY TO BUY THEIR STUFF!!! So what you are saying is that in essence they are just GIVING us the real goods

You are leaving out several other critical motives for China's purchases of US debt- it is not simply to support their exports.

1- The US Treasuries earn China a yield- when they recycle US dollars back into US Treasuries or rollover their existing stock, they gain a little more every time. Remember, they are the creditor, we are the debtor, we pay interest. China is like a bank that lets a homeowner refinance his mortgage over and over and over and over- the bank risks no real assets, but continues to keep the homeowner on the interest-paying treadmill.

2- China needs dollars to buy oil.

3- China needs dollars to make other Forex moves related to the renminbi- that's too involved to type out here.

>>"How stupid do you think China is.? "

Who is saying that China is stupid?

Multinational capitalism has successfully removed a huge amount of productive capacity from a high labor cost market, the US, and transplanted it to a market where slave labor and prison labor is common, China.

You need to look at the big picture about why China would prop up US consumer demand with their debt purchases- the globalization crowd needs to hide from Americans their flat or declining standard of living by giving them cheap imports, fooling the Americans into thinking they have as much spending power as ever. In this manner, you can keep the US population docile while all the meat is cleaned off the bones.