Governmental debt and foreign reserves

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londoncricket
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Report Thread starter 5 years ago
#1
As seen in this link, the CIA estimated China's national debt to be roughly 31.7% of national GDP and Japan's to be a whopping 214.3%.

Both China and Japan have HUGE reserves of USD, China holding roughly $1.3 trillion and Japan roughly $1.2 trillion.

If China and Japan have such huge reserves of foreign currency, then why don't they use that money to pay off debts? Because the US is printing money on an unprecedented level, which means that their foreign reserves are devaluing quickly and therefore each time the US prints, they lose value and they could use that money to reduce the huge debt burdens, but they don't.

Why?
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