Why China keeps buying up US debt

 China is once again buying up the United States debt from other countries. With the way the Euro is going the financial world still sees the United States dollar to be the most substantial return for their dollar. Even with the economic crisis the dollar seems to be a better play then the Euro. As stated in the article "for the time being the US dollar is still stated as the worlds reserve currency". China is even buying up the US Treasury Securities. Even with low interest rates countries are buying up United States Securities because it's the safest play for their countries money. If the United States doesn't face their debt burden we could see a crisis similar to Europe's current problems. With the United States interest rate at a low 3 percent countries feel that a small return is better than a loss of money.



 












http://money.cnn.com/2010/06/15/markets/thebuzz/index.htm