The US, with their plans to save the banks, other industries and the American citizens, have committed more than 2 000 billions in their economy. Where the money is coming from? If China stops purchasing US bills, the US will not have the liquidities to tackle the recession. Read on to know how this affects us!

Written by Réjean Boudreau, Trustee

The US, with their plans to save the banks, other industries and the American citizens, have committed more than 2 000 billions in their economy. Where the money is coming from? If China stops purchasing US bills, the US will not have the liquidities to tackle the recession. Read on to know how this affects us!

Our economy is so tightly woven with the American economy that our recession comes from the American recession. The deeper they go, the deeper we will go. We export 85% of our production to the US. In January 2009, the US lost 598 000 jobs. Since our population is ten times smaller, if we applied the ratio, we should have lost 59 800 jobs, i.e. one tenth (1/10). Unfortunately, we lost 129 000 jobs.

That's why now, it is more than important than ever for us that China buys US Treasury bills!!!