China wonders: Why do we own so much U.S. debt?

[Tony_FLADEM]

In the highest-level statement to date by China, Chinese Premier Li Keqiang has weighed in on the U.S. debt ceiling debate.

At a meeting on the sidelines of a summit in Asia, Premier Li told U.S. Secretary of State John Kerry that China was paying "great attention" to the political gridlock in Washington.

Chinese officials have voiced their concerns over the impasse, worried the stalemate could trigger a debt default.

Earlier this week, Zhu Guangyao, vice finance minister, warned that the "clock is ticking" in reference to the Oct. 17 deadline to lift the debt ceiling in the U.S. He urged the U.S. to "ensure the safety of Chinese investments."

(Read more: If US defaults, will China bail on Treasurys?)

According to U.S. data, China has $1.3 trillion in Treasurys, making the country the biggest foreign holder of U.S. debt.

State media has refrained from harsh criticism, suggesting the Chinese government is sensitive to public opinion about its investment decisions.

This week, frustrations have been voiced online—directed not at Washington but Beijing.

On social media in China, many are questioning why their government put so many of the nation's eggs in one basket.

http://www.cnbc.com/id/101103246

[A HERETIC I AM]

1. Where the fuck else are they going to park $1.3 trillion? n/t

[jberryhill]

2. Because they can't make it cheaper themselves?

[Turbineguy]

3. Well, it's like this....

A bunch of Wall Street bankers and freshly minted MBA middle managers wanted big fat bonuses. Where to get the money? Well, they could do what Romney did and steal the workers' pensions. But Romney had already stolen them. So the came up with a plan of selling you some debt and taking a cut. Much like a thief does a thousand dollars worth of damage to a car to get a radio that he hocks for $30.

I hope that's clear.

[Pretzel_Warrior]

4. because that is how you are buying no action on your currency manipulation

and because your country doesn't buy enough products from the US to counter balance the trillions coming over from your factories. That trade imbalance is somewhat rectified by your government socking away money in T-Bills which float our budget deficits which allow us to keep buying so much of your cheap shit.