Passing the Buck: China, Dollars and Debt

BY Elizabeth Shell  November 12, 2010 at 4:26 PM EDT

Editor’s Note: A bit more about the interplay between Chinese currency and U.S. debt.

First, a simple graphical explainer as to how the Chinese government gets so many dollars in the first place, using Ford Motor Company and China Steel as an example.

And more from MIT professor Yasheng Huang, who was interviewed by Paul Solman in Thursday’s broadcast. Here, the two talk about whether or not it’s fair to blame China for holding so many dollars, and some macroeconomic imbalances between the countries.

With the G20 wrapping up this week, exchange rates, debt instruments and international trade are subjects on many minds.

Thanks to Jeremy Pennycook for graphics help.