Understanding the China/US Economic Relationship

Hilarious but well simplified presentation. Although a neo-Marxist, he is a pleasure to watch.

http://www.youtube.com/watch?v=t-mUVkmlBSA&feature=related

He only forgot to underline one part of the equation. The US may owe some trillion to the Chinese. But this also make the Chinese, for as long as they are exposed to that debt, to ensure , to the best of their forces, that the US doesn’t go belly up on this debt.

Another point that is missing, is how the changes in US economic policy may effect their relation with China. For example, the printing of money in US, effectively devaluates the value of US debt that the Chinese have. This is bad for the Chinese. Interestingly the Chinese buy lately european as well as japanese debt. A new place where to put their profits. A very interesting situation.