Why is China Buying US Treasuries

There is big master plan of Chinese central bank for buying US treasuries. One side china wants to earn the the interest on his bought US treasuries and second its effect will on its products cost. These products will become cheap. How is it possible?

We know that Chinese central bank buys dollar by printing new yuan every year. These US dollars are bought in the international forex market. Demand of dollar will increase. Now, US central bank will get debt from Forex market by issuing US treasuries. Same USA treasuries will be bought by Chinese central bank. Because of printing cost of yuan is so cheap in china. China will be in profit. Now, debt received through US treasuries will be given in the market.

Now, again, US people will have money because they will get loan from the fund of US treasuries at cheap rate of interest. USA central bank will have enough money. So, there is no reason to increase the interest on loan for USA people.  Now, USA people  have to decide how to consume this money. They will buy china's products because with one dollar, they can buy more products from china because china is on the policy of keeping lower his currency and make addicted USA people for his Chinese products. Still, china on this policy. When china will see all USA have become the addicted on the Chinese products. It leave the policies of buying US treasuries. In future, US will ready to buy Chinese product at high cost also because they will become addicted Chinese products.

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Related : Forex Policy of China 






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Accounting Education: Why is China Buying US Treasuries
Why is China Buying US Treasuries
There is big master plan of Chinese central bank for buying US treasuries. One side china wants to earn the the interest on his bought US treasuries and second its effect will on its products cost. These products will become cheap. How is it possible?
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