After watching the videos on foreign exchange and trade, your scholars may be wondering how exactly American debt purchasing has led to lower interest rates. Here's their answer. Sal reviews the Chinese investment cycle in US treasuries, explains how these loans operate both domestically and internationally, and clarifies the difference between a treasury bill and treasury bond. Scholars explore how this process effects the US with particular focus on lowered interest rates. He breaks down the concept of supply and demand lending, and brings up side effects of this influx of loaned money to the federal government. Finally he closes the loop by pointing out the increased cash flow to American citizens gives them more ability to purchase China-made goods.
