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Unformatted text preview: Despite the high debt, foreigners still find American money attractive. This helps keep the demand high along with actions from the federal government. Actions such as keeping inflation down. Fortunately, inflation has been little to nothing and will hopefully stay that way until America can pull out of the recession. The Matter of buying of debt if crucial to economics because it effects money. Money is the method of exchange. If money has little value, then people need more of it to buy what they need. If money has a greater value, then people will buy more and have more money in their pockets. For this reason, it is crucial that China keeps buying because if they don't, the currency will depreciate and our standard of living will decline. References Crutsinger, Martin (2010, March 15) “China trims holdings of Treasury securities.” The Times and Democrat, retrieved September 13, 2010 from http://iw.newsbank.com...
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- Spring '11
- Economics, United States dollar, dollar