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Here’s What’s Going on With China and the US National Debt

What’s happening?

The U.S. national debt is at $20 trillion. A large chunk of that debt is owned by China in the form of U.S. Treasuries.

How exactly is China involved in all of this?

The largest foreign holder of U.S. Treasuries, China holds Treasuries totaling $1.2 trillion in value, keeping the East Asian nation’s currency weaker than the U.S. dollar and boosting its export industry.

On Wednesday, Bloomberg News reported that Chinese officials recommended slowing or even stopping the country’s purchases of U.S. Treasury bonds. The report worried investors because China’s large holdings of U.S. Treasuries could rock the market.

Did China stop buying U.S. Treasuries?

China has responded “fake news” to the Bloomberg report, saying that it’s just diversifying its foreign exchange holdings. The State Administration of Foreign Exchange said the country is not halting or ending purchases of U.S. Treasuries.

Glenn’s take:

The Chinese economy is in trouble, and the U.S. may in turn be in trouble as its biggest investor struggles. Labor costs are rising, fewer people are buying Chinese exports and China has a large amount of debt.

“The last few years for them have been the worst in 30 years,” Glenn said. “Like the rest of the world, they never really recovered from 2008 and the financial crisis.”

This article provided courtesy of TheBlaze.

GLENN: The U.S. national debt is over twenty trillion and rising. Most of that is owned by you or the government, but there’s 6.3 trillion Treasury bills, notes and bonds that are held by foreign countries. China is the granddaddy of them all, holding US treasuries totaling 1.2 trillion. It’s been good for China, helping to keep their currency weaker than the dollar, which in turn keeps their exports competitive, and it’s been good for us. Consumer prices for goods remain low, and the government gets more money to spend themselves silly.

Some people try and make all this sound hard, but it’s actually pretty easy. The United States is like a big corporation. Countries like China that purchase our debt in the form of treasuries are like investors. They buy a ten-year treasury, we get the cash but promise to repay when it matures.

Something interesting happened yesterday morning. The dollar, treasuries and stock-index futures all declined due to a rumor coming from China. The rumor was that senior government officials in Beijing had recommended slowing or even halting purchases of US Treasuries. The consequences for that could be huge. China is our biggest investor. Why would they do this now?

Hardly anyone’s talking about the danger the Chinese economy is in. The last few years for them have been the worst in thirty years. Like the rest of the world, they never really recovered from the 2008 financial crisis. Less people are buying their stuff while, at the same time, their labor costs are rising. They’ve racked up huge debt with underperforming loans, and nearly half a billion people live below the poverty line.

If your family invests in the stock market, but then dad loses his job and starts to miss mortgage payments, do you keep buying stocks or do you save your money and prepare for hard times? This is the position China is now in. They see trouble and they’re getting ready. The truth is, they’ve been quietly selling debt and calling in loans since 2016. Japan briefly overtook China as our largest debt holder before, they too, began calling in loans.

This leaves us with a couple choices. The government can either cut spending or they can print money. Which one do you think they’ll pick? But one thing is clear: the global economy is getting ready for something big. Here’s hoping we don’t pour kerosene on a bonfire.

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NO comparison between REAL Jim Crow laws & Georgia voting bill

The left keeps comparing Georgia's new voting regulations to Jim Crow era laws, arguing the voting bill is too restrictive and even racist against minority populations. But Glenn argues that it's an INSULTING comparison to make, especially to those who actually lived and experienced the real, horrifying Jim Crow laws during the early 20th century. In this clip, Glenn explains what Jim Crow ACTUALLY means and how Georgia does not even COME CLOSE.

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Will vaccinated Americans still need mask regulations by Memorial Day?

With Texas' recent elimination of state-mandated COVID regulations, Major League Baseball was back full swing in the Lone Star State; the Texas Rangers just held the first full-capacity sporting event since the start of the pandemic. In this clip, Stu details the non-strict 'mask police' that were at the game, and Pat makes an interesting prediction: could mask regulations for vaccinated Americans actually be phased out by Memorial Day?

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Did Joe Biden tell America to stop praying?

Enough prayers? Why is supposed Catholic Joe Biden suggesting that Congress ought to stop praying for after someone commits acts of gun violence?

On Friday, Stu Burguiere and Pat Gray filled in for Glenn and discussed President Joe Biden's remarks during his speech on gun control. "Enough prayers. Time for some action," Biden said. Stu and Pat were surprised how dismissive Biden appeared to be on the idea of prayer.

Watch the clip to hear more. Can't watch? Download the podcast here.

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WATCH this pastor chase 'communist' cops out of his church: 'Gestapo is not allowed here!'

Just days after Canadian pastor James Coates was released from prison for refusing to bow to COVID-19 lockdown restrictions, several police officers showed up at another church to ensure restrictions were being followed. But Polish pastor Artur Pawlowski of the Cave of Adullam Church in Alberta, Canada, knew his rights, telling the cops not to come back until they had a warrant in hand.

Filling in for Glenn Beck on the radio program this week, Pat Gray and Stu Burguiere played a video of the interaction.

"Please get out. Please get out of this property immediately. Get out!" Pawlowski can be heard yelling at the six officers who entered his church.

"Out! Out! Out! Get out of this property immediately until you come back with a warrant," he continued. "Go out and don't come back. I don't want to talk to you. You Nazis, Gestapo is not allowed here! ... Nazis are not welcome here! Do not come back you Nazi psychopaths. Unbelievable sick, evil people. Intimidating people in a church during the Passover! You Gestapo, Nazi, communist fascists! Don't you dare come back here!"

Watch this clip to see the heated exchange:

Want more from Glenn Beck?

To enjoy more of Glenn's masterful storytelling, thought-provoking analysis and uncanny ability to make sense of the chaos, subscribe to BlazeTV — the largest multi-platform network of voices who love America, defend the Constitution and live the American dream.