American-Chinese Debt Loop

After watching the videos on foreign exchange and trade, your scholars may be wondering how exactly American debt purchasing has led to lower interest rates. Here's their answer. Sal reviews the Chinese investment cycle in US treasuries, explains how these loans operate both domestically and internationally, and clarifies the difference between a treasury bill and treasury bond. Scholars examine how this process impacts the US, with a particular focus on the effects of lowered interest rates. He breaks down the concept of supply and demand lending and highlights the side effects of this influx of loaned money on the federal government. Finally, he closes the loop by pointing out that the increased cash flow to American citizens gives them more ability to purchase goods made in China.