© 2024 Blaze Media LLC. All rights reserved.
What’s happening?
The U.S. national debt is at $20 trillion. A large chunk of that debt is owned by China in the form of U.S. Treasuries.
On today’s show, Glenn broke down the situation with this analogy: the U.S. is like a giant corporation and other countries buying U.S. Treasury bonds are like investors.
How exactly is China involved in all of this?
The largest foreign holder of U.S. Treasuries, China holds Treasuries totaling $1.2 trillion in value, keeping the East Asian nation’s currency weaker than the U.S. dollar and boosting its export industry.
On Wednesday, Bloomberg News reported that Chinese officials recommended slowing or even stopping the country’s purchases of U.S. Treasury bonds. The report worried investors because China’s large holdings of U.S. Treasuries could rock the market.
Did China stop buying U.S. Treasuries?
China has responded “fake news” to the Bloomberg report, saying that it’s just diversifying its foreign exchange holdings. The State Administration of Foreign Exchange said the country is not halting or ending purchases of U.S. Treasuries.
Glenn’s take:
The Chinese economy is in trouble, and the U.S. may in turn be in trouble as its biggest investor struggles. Labor costs are rising, fewer people are buying Chinese exports and China has a large amount of debt.
“The last few years for them have been the worst in 30 years,” Glenn said. “Like the rest of the world, they never really recovered from 2008 and the financial crisis.”
To see more from Glenn, visit his channel on TheBlaze and listen live to “The Glenn Beck Radio Program” with Glenn Beck and Stu Burguiere weekdays 9 a.m. – 12 p.m. ET on TheBlaze Radio Network.
Want to leave a tip?
We answer to you. Help keep our content free of advertisers and big tech censorship by leaving a tip today.
Want to join the conversation?
Already a subscriber?
News, opinion, and entertainment for people who love the American way of life.
BlazeTV
more stories
Sign up for the Blaze newsletter
By signing up, you agree to our Privacy Policy and Terms of Use, and agree to receive content that may sometimes include advertisements. You may opt out at any time.
© 2024 Blaze Media LLC. All rights reserved.
Get the stories that matter most delivered directly to your inbox.
By signing up, you agree to our Privacy Policy and Terms of Use, and agree to receive content that may sometimes include advertisements. You may opt out at any time.