Gracia Gilreath, Chapter 11, Question 6

The passage that explained the economic relationship between the United States and China was very interesting and informative. The passage explained how both sides of the relationship are not in the best shape. The United States has borrowed many loans from China in order to get its exports, so the US owes China trillions of dollars. This has negative connotations for the US because if China stops lending, the stability of the American economy would plummet. Likewise, this also has negative effects for China because the United States government could promote inflation by printing more money, which will cause the dollar to lose value along with the trillion dollar debt. The United States would then be able repay the debts fully (because inflation has greatly lowered the debt due to the decrease in value of the dollar), but China would not get the amount they deserved, so this could lead to more negative and even destructive outcomes.