BLOG

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.

TV

Marxist Methods: Debunking the Left's LIES About Critical Race Theory

We've heard a lot about critical race theory lately, and for good reason: It's a racist ideology designed to corrupt our children and undermine our American values. But most of what we see are the results of a process that has been underway for decades. And that's not something the mainstream media, the Democrat Party, and even teachers unions want you to know. They're doing everything in their power to try and convince you that it's no big deal. They want to sweep everything under the rug and keep you in the dark. To fight it, we need to understand what fuels it.

On his Wednesday night special this week, Glenn Beck exposes the deep-seated Marxist origins of CRT and debunks the claims that it's just a harmless term for a school of legal scholarship. Newsweek opinion editor Josh Hammer joins to argue why we must ban critical race theory from our schools if we want to save a very divided nation.

Watch the full "Glenn TV" episode below:

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.

THE GLENN BECK PODCAST

'They believe their job is to REMAKE your child': WSJ writer warns public schools may be LOST to woke trans activism

There's a new "reality" spreading, and the mere act of questioning it has become incredibly dangerous, Wall Street Journal investigative journalist Abigail Shrier told Glenn on the most recent episode of "The Glenn Beck Podcast."

Shrier's book, "Irreversible Damage: The Transgender Craze Seducing Our Daughters," exposes the radical gender activism that — like critical race theory — has overtaken our children's schools and culture. But even worse, she warned, it could end your parental rights for good.

Shrier made it clear she is by no means "anti-trans," but simply speaking up against the extremes of this new "reality" has made her enemy No. 1 to many activists. Her book has been bashed so hard by the Left that Target has stopped selling it twice, Amazon once banned ads for it, and the American Booksellers Association even called sending it to others "a serious, violent incident."

In the clip below, Shrier explained why she believes "there may be no hope for the public school system."

"You have teachers behaving like activists across the country who have no interest in actually teaching. They believe their job is to remake your child," she asserted. "We're seeing so much evidence of that, I think it's fair to say that it may be too deeply rooted in the ideology being taught in public school. I'm not sure that the public school system is redeemable at this point."

Watch the video clip below for more or find the full podcast with Abigail Shrier here:

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.

RADIO

Is California ‘PURPOSEFULLY’ destroying this small business?

It seems like some politicians are purposefully trying to destroy the lives and dreams of certain Americans, specifically small business owners. Dave Foldes spoke to Glenn over six months ago after THIS audience raised thousands of dollars for his restaurant that refused to close: Cronies Sports Grill. Now, despite making progress in his administrative battle against LA, the city of Agoura Hills, California is coming for Cronies instead. And the reasoning is INSANE. But Foldes isn't giving up, and neither are his supporters. It's the ultimate David vs. Goliath showdown.

THE GLENN BECK PODCAST

Trans Activism Will End Your Parental Rights | Abigail Shrier | Ep 110

There's a new "reality" spreading, and the mere act of questioning it is incredibly dangerous. Just ask Wall Street Journal investigative journalist Abigail Shrier. Her book, "Irreversible Damage: The Transgender Craze Seducing Our Daughters," exposes the radical gender activism that — just like critical race theory — has overtaken our children's schools and culture. But even worse, Shrier argues it could end your parental rights for good. She is by no means "anti-trans," but simply speaking up against the extremes of this new "reality" has made her enemy number one to the activists. Recently, the American Booksellers Association even called sending her book to others "a serious, violent incident." Abigail joins Glenn to lay out just how slippery this slope has proven to be and what we — conservatives and liberals — must do to protect our children.