America - Why It's The Best Stock To Own | Teen Ink

America - Why It's The Best Stock To Own

November 7, 2009
By BlueRoseIV SILVER, Keller, Texas
BlueRoseIV SILVER, Keller, Texas
5 articles 0 photos 3 comments

Beginning almost as early as the revolution itself, America has used a system that requires a national deficit for the country to run. The original plan, outlined by Alexander Hamilton, demanded that international debts be paid off as soon as possible so that the nation would have no foreign loyalties, and national debts be paid at a slow pace so as to keep our nation's investors on board (they put all they had into America surviving because they had money invested in it). It seems in recent times, however, that the roles of these debts have reversed themselves. The world today has become a "global economy" in which manufacturing nations, such as China, and consuming nations, such as the United States, must form mutualistic relationships in the economic market. With the birth of these relationships, even isolationist countries must become dependent on other nations or risk economic failure themselves. It has been credit to the scare of both news reporters and political speculators alike that in these conditions China has turned to buying-up the United States' debt. This, however, is not binding us to China, but forcing some lever of their dependency on us. Many an American at some point has had the thought that the United States is being targeted for economic control by China, but all evidence suggests the contrary. If the United States fails, China begins to fall with it. After all, we are their biggest customer, why would they want to see us fail and lose all our business? With each purchase of debt from the United States, it is as if China is buying more and more of American "stock", for if the United States fails, they will never be able to pay China back the money owed them. China, more than anything, wants to see the United States sit-back, prop its feet up, and relax. It wants us to continue making more and more money so we can both pay off the debts we owe them while still being their number one business partner. China would be no happier than to see us out of all conflict that has the potential to harm this flow of money between us and them; they wish for the United States to have the greatest level of success possible, and for their stock in America to begin to rise in value once again.


The author's comments:
Commentary on China Buying up the United States' debt, the new Global Economy, and Chinese-American relations in the 21st century.

Similar Articles

JOIN THE DISCUSSION

This article has 0 comments.