Why does China buying USA bonds therefore peg the yuan to dollar exchange rate as low and stabilise the ER ?
Saturday, July 4th, 2009awindsor200 asked: I am not an economist. If the USA runs up debt serviced by bonds, at present China buys the debt as bonds, gilts etc. This sounds ominous. This encourages US debt and keeps bond yields low, as they can easily find a buyer at present ? Surely it ...