Boom Bust Season 3 Episode 132 The Chinese Are Coming to America, Long On Munis

Boom Bust season 3 episode 132 titled The Chinese Are Coming to America, Long On Munis, delves into the influence of China's investments in America's municipal bonds. The episode highlights the growth of investment from China in American municipal bonds over the last decade, and the implications it has on the US economy and its financial relationship with China.

The show features informative interviews with financial experts who discuss the rising interest of Chinese investors in the American municipal bond market. They examine the reasons behind this interest and delve into the potential economic outcomes, such as job growth or risk to national security.

The hosts explore the issue of local governments' dependence on bonds to fund infrastructure and public works projects. They discuss the challenges posed by the US economy's slowdown, which has led to a decline in tax revenues. The episode features expert commentary on how Chinese investment could benefit state and local governments with cheaper funding rates, given their willingness to invest in lower-rated bonds.

During the episode, the hosts also consider China's investment pattern and the types of bonds that Chinese investors tend to purchase. They examine whether these Chinese investors jump to buy low-rated bonds that others are hesitant to invest in or the more secure municipal bonds issued by wealthy cities.

Furthermore, the episode highlights the potential risks of Chinese investment in municipal bonds in terms of national security. The hosts bring up incidents, such as the 2017 acquisition of America's largest pork producer by a Chinese firm, to suggest the foreign government's influence in the US economy.

The episode explores how the US government can regulate Chinese investment in municipal bonds. The hosts bring up issues such as mandatory registration for all foreign investors, enhanced scrutiny on infrastructure investment deals, and competitive oversight over spending.

The show concludes by examining how Chinese investment in American municipal bonds affects relations between China and the US. The hosts discuss the potential implications for future investment patterns and competition between the two countries. They point out that the growth of Chinese investment in American municipal bonds is likely to continue as long as China remains interested in diversifying its investments.

In conclusion, the episode of Boom Bust, The Chinese Are Coming to America, Long On Munis, provides insightful analysis of the rising trend of Chinese investment in American municipal bonds, exploring its risks and benefits. The show offers an informative discussion on the potential economic and political outcomes of China's investments, giving a clear understanding of how these investments alter the US economic landscape.