China will own 1 trillion US dollars

It looks like the clever US gnomes have deliberately created this imbalance to put China in an uncomfortable position.
God, they are incredibly competent.

One Trillion is seven percent( 7%) of our Gross National Product for 2006( ESTIMATED)

"unless they are certain that they will be repaid"

The duly constituted Iraqi government owns the Iraqi Oil Supply. It should be no bad news to realize that the Iraqi government can utlilize its chief resource to better the lives of the Iraqi people!

Financial theories are not my forte, but this article scares me. I see a collision course that can only end badly, with the result: another Friday the 13th.

Because more and more American jobs are exported to China. That cannot be too good for the US. A record deficit cannot be too good for the US either.

detano inipo wrote:

Because more and more American jobs are exported to China. That cannot be too good for the US. A record deficit cannot be too good for the US either.

Not necessarily. Even if China destroys American jobs by delivering products Americans could make, it also creates American jobs by investing its money in America -- which it does by buying your bonds. In dollar terms, Chinese net investment in America are equal in value to the Chinese products America imports. So the net impact on American jobs is zero.