28 Mar 2016 China's gift to us: cheap goods

The Chinese haven't been taking advantage of us by running a huge trade deficit, they have been giving us a huge gift in the form of ever-cheaper goods (e.g., iPhones, HDTVs). And what did they do with all the money we paid them for those cheap goods? Well, they ended up investing it all here, mostly in Treasury notes. So, at the end of the day we got lots of cheap stuff, and we got to keep our money to boot. Sounds like a sweet deal...