BUSHONOMICS MADE SIMPLE. The New York Times' James Brooke and Keith Bradsher explain one of the effects of the trade deficit, a longtime problem that has been exacerbated by the Bush administration's irresponsible fiscal policies:
[O]fficials at the State Administration of Foreign Exchange in Beijing have been seeking higher yields by plowing billions of dollars a month into bonds backed by mortgages on houses across the United States, according to bankers who help Beijing manage the money. By helping keep mortgage rates from rising, China has come to play an enormous and little-noticed role in sustaining the American housing boom.
Keep that in mind the next time you're wondering why the White House won't criticize China's appalling human-rights record.
Be sure to read the last two paragraphs. At least there's something to laugh about.