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Does US purposely keep giving stimulus package on purpose, aim to depreciate their dollar value?

so that they will return less of the real value to their creditors. esp China, and other countries who are holding huge amount of US dollars?

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  • Anonymous
    1 decade ago
    Favourite answer

    Why should we do that? We can print the new treasury bills to pay back the old one without any problem. If we do what you just said, it will affect the oil producing countries more than China. We know that China will not play by the rule, and keep manipulating the Yuan which is pegged to the US dollar. The low value of dollar will not affect it.The second round of stimulus package will save the US economy which is likely going into deflation with high unemployment rate.

  • 1 decade ago

    I don't know if your know what you are talking or wirting about. The real fact is that since time immemorial, the US had been doling out loans or grants on a very selective basis. The biggest ones usually to allies wherein American interests lie.

    But majority of loans, and sometimes grants (freebees) are in form of old/obsolete military hardware and/or technology and excess subsidized agricultural products which the government bought at a loss to maintain local price stabilization and incentive for farmers to continue farming on.

    Stimulus packages, whether you believe it or not (I cannot force you to) are enducement to countries to toe the line or follow the dictates of the U. S. of A. Ever think why the US is embattled with so many enemies? It is because sometimes it had exceeded its bound of decency on these matters.

    By the way, my country is a third world country benifitting from the supposed "stimulus package".

    Now, on the sober side, I believe that the US, at least in this present administration, is hard at work to keep its stimulus package to within reasonable means. At least on a quid quo pro basis instead of an obvious overwhelming advantage (but I still believe there still is but not large enough to make it obvious). It's gift giving or loans which are not gifts in the first place and had to be paid for, are not to destabilize any economy (meaning any country) but to maintain friendly relationships.

    In such doing, I do believe that the dollar value had not depreciated due to the loans or grants. The loan's were usually coursed through the World Bank or the International Monetary Fund of which the US had a very great influence on its disbursement to say the least.

    Targetting China is, to my mind, is the lowest blow or the poorest analysis of all. First of all, even if China has an enormous amount of US Dollar on hand, unless their trade remains constant, that would change in an instant.

    Buy America, meanilng be patriotric and buy only American goods, impose higher taxes on imports and other initiatives could have had affected a change in the balance of trade. So far, as I can discern, the US hadn't done that.

    So I cannot fathom the question that the US is intentionally targetting other countries like China with its gift giving.

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