China Research Paper

"China is more than happy to own a large portion of the U.S. debt," as this gives it great economic clout within the international market (Amadeo, 2012). This power has the potential to seriously damage the American economy if the nation was to suddenly dump its American loan holdings. If this were to happen the value of the dollar would drop dramatically, domestic interest rates would spike, and the United States would be left standing alone to try to pick up the pieces.

This growth in national debt has blunt consequences on inflation, interest rates and growing economy. Foreign control of large amounts of government debt means that the taxes will have to be raised to repay debt and percentage owned to overseas governments which is not acceptable. Assuming that trade deficiency also exists it will lead to depreciation of dollar which effect its position as a reserve currency, and if during this process any new currency emerge as a replacement of reserve currency, higher interest rates will be required to sell the debt to foreign countries (Inflation). Raised interest rates have a negative impact on the economy and high accumulation of debts leads to high interest rates (Spending). Hence the economy suffers. This means that the funds for government programs like Social Security and Medicare are not enough (Economic Progress Under Obama). Another consequence of high national debt is the reduced flexibility in fiscal policy (Spending).

In a country that revolves around money, if the economy would fall, it could take the whole nation down with it. The United States is one of many countries built up by its power in the economical industry. Facing a national debt of $20 trillion now, America may not know its power

Why do countries keep loaning to the US? Despite of the fact that US is in debt, it is still one of the biggest customers in imports. Countries such as China and Japan are actually loaning US money to buy their exports. This situation is like a casino is loaning you money to play blackjacks; the house makes more money as long as you can pay back. The United States has a strong economy to support itself for good credits and therefore can keep on getting more loans.

Between 1870 and 1900 immigrants were coming in from Europe such as Sandinavians, Germans, Irish, Russians, Czechs, etc. The home stead act was put in place to encorage people to settle the western land of America. It permitted settlers to buy plots of 160 acres for a small fee for five years as long as they imporved it. Mean while, a great amount of Chineese were coming over in search of a better life. At first the Americans were pretty okay with the Chineese coming in but, eventually they realized that the chineese are very smart and succefful so they began to see them as competition. As Chineese began including themselves in the minng business, the Americans placed a special tax on foreign miners. 25 million immigrants arrived in between

With trade, a growing population, and the government not being able to pay for things came hyperinflation, simply a great depression. Although we are a leading economic nation right now, China’s economy is at an incredible pace and can and in many ways already has taken over ours. As Rome did, we often overextend our reach beyond the point of return on investment. We owe China lots of money to begin with from buying things from them, and also borrowing money. From what I understand, if China sells off our treasury yields, it will make our currency not worth as much. When our currency isn't worth as much it causes inflation, which can cause a major downfall.

Simply put, the level of interest rates affect economic decisions at every level, whether by the individual consumer, or a major corporation, or entire countries. First, we must look at the residential and commercial real estate market. Homeowners had a golden opportunity to purchase or refinance their homes between 2008 and 2015, when 30-year rates were at unusual lows. (CITE) This was of particular help when many homeowners suffered through “underwater mortgages” on homes worth less than the mortgages owed. Refinancing at a lower interest rate ensured millions of afflicted homeowners would be able to reduce their interest payments during such a troubling economic period. (CITE) But given the Federal Reserve’s likely decision to raise rates, homeowners will be at a disadvantage. The most recent (as of 12/9/2016) average 30-year fixed

Golden Age China had a greater cultural influence than did 21st century China, whereas 21st century China has had a greater economic influence. There were many cultural benefits from the Golden Era, including religion, fine arts, and innovations. As a result of the peace and stability which formed during the Tang dynasty, Buddhism was introduced and became a dominant religion among the Chinese. Alongside the new religion, Taoism was also a major religion in China. Through the bonding of these two religions, several other religions emerged, such as the Pure Land Sect, Tian-tai sect, and also Chan Buddhism.

The debt could lead to a financial crisis. A U.S. credit default or fears of such default could cut off credit flowing to the United States. A true sovereign debt crisis is unlikely to occur in the United States as the U.S. debt is held in dollars and the Federal Reserve could always print more dollars (Wallison). A true crisis could only occur if our debt was held in the Euro or Chinese Yuan. But the U.S. could still have a pseudo-default situation where concerns about American ability to repay debt limit creditor’s willingness to loan money.

Some of the world's greatest inventions came from China. Though they have evolved over time we still use some of these inventions today. Three ancient Chinese inventions that have influenced the world today are silk, kites, and compasses.

Interest rates affect everything in the business world, including the amount of money you must pay on your loans and the ease of obtaining those loans, credit card rates and even the stock market. This is because high interest rates reduce corporate earnings by slowing business and making it more expensive to do business, so the prices of a company’s stock will very likely decline as its earnings declines.

Furthermore, the nation will go deeper into debt with the rest of the world as Americans continue to rely on the strong flow of foreign money, particularly from central banks in Asia, to finance the trade gap. China, Japan and other foreign governments are some of the biggest holders of government securities, lending money to cover the substantial federal budget deficit and helping to keep interest rates and home mortgage costs here relatively low. As a result, American consumers are able to spend more and save less.

On July, 1981 at 7:05pm, Hyatt Regency Hotel in Kansas City USA, the local station, hosted a dance competition in the atrium lobby. The atrium and walkways were filled with up to 2000 peoples. As many people standing and dancing on the suspended walkways, a loud crack was heard and the walkaways collapse. This caused 114 peoples fatalities killed and left more than 200 injured. Furthermore, the collapse led to a millions of dollars in costs and majority of peoples were affected. The Texas university suggest that, this was the most devastating structural failure in United States.

The following paper coherently illustrates the trade patterns of USA and China and describes the various trade policies developed over the past years that have impacted the respective economies of both countries alongside the effect of the same on the bilateral trade relations between the two. Based upon the previous statistics, US-China trade is considerably one of the largest trading partners in today’s economies. Both countries’ trade relations entail exchange of investment, services as well as goods varying from agricultural products to non-agricultural products. Currently, China is the second-largest trading partner, third-largest export market and the biggest source of imports for the United States. The U.S. government’s debt purchased by China provides US the benefits of low interest rates (Morrison, 2015). While for few this economic relationship is considered to have a positive effect as it helps to fund the U.S. economy, for others it is an attributable concern that China may gain more power over the U.S (Loc.gov, 2016).

Every single country is at the different stage of the economic cycle, some of the countries experience rapid growth and would prefer higher interest rates, whereas other countries choose stable and slow growth. Because of this it is not possible to choose the best solution for all of the countries. Some of them will lose and some of them will gain, at least by the time the common policy has been implemented.