China says lending to US will not go on forever

[Bindare_Dundat]

BEIJING (AFP) – China warned Wednesday it would not keep lending money to the US economy indefinitely, even as new data showed it had consolidated its position as the top buyer of American government bonds.

"China's increased purchase of US Treasury securities should not be interpreted as an endorsement of the assumption that the US can borrow its way out of the current financial crisis," the China Daily said in an editorial.

The warning from the state-run newspaper, an English-language daily that mainly addresses a foreign audience, came after the US Treasury Department reported a steep increase in Chinese holding of US Treasury bonds.

[Rami]

China is in a good position these days. They lend money which by itself is profitable and gives them more political leverage, but also help the American economy to keep consumer confident high so people continue to buy more cheap Chinese gods at Walmart.

And Walmart is like an extension of China. The profit of selling all those goods here goes directly down the pockets of a communist government.

Is China just a big business idea?