US debt held by China

http://nationalinterest.org/feature/china-may-already-be-losing-the-trade-war-19701

This is an interesting article that does a pretty good job explaining how China is not as economically powerful as everyone thinks. It also makes a very interesting point in terms I can understand regarding US debt held by China. In order to finance the yearly federal budget deficit we sell US treasuries to the public, companies and other nations. The largest holder of all this debt is the US taxpayer. The largest foreign holder of this debt is China. Google it.

Here is the kicker....This article goes on to state that China with over a $1 trillion in US debt has over the past few years allowed Chinese investors to use this money to finance purchases in real estate and other assets in the US. So basically They lent us money by buying treasuries and then turned around and sent those same dollars right back to the US.