We are already there IMO. Without massive loans from China, America could literally not pay the bills the way things are currently structured. But as long as America keeps paying interest and buying cheap products from China; China will be glad to lend us the money to dig the hole even deeper.

This is why America can't do anything to stop the trade gap. It's tiny and insignificance compared to the massive debt owed to China. If we were to get heavy handed with them they would simply stop loaning the US money. Worse China would unhinge their currency from the dollar. Now America wants them to do that to help the trade defecit but if we were not getting the cheap goods from China then we would see massive hyper-inflation as product costs soar.



>I wonder that the whole of the United States does not see the real threat in outsourcing. At some point in time the U.S. will actually be dependent on those countries to survive. A scary thought - the U.S being dependent on China. It is a serious trend though...