CHINA OWNS THE UNITED STATES
Because of our elected leaders' penchant for spending money they don't have, for so many pork barrel projects we don't need, and their subsequent borrowing from foreign countries to pay off these obligations, we find ourselves heavily in debt to China.
Now China is reported to be conspiring with some of our other creditor countries to persuade the world to remove the Dollar as the world currency. Further, China has warned President Obama and other American officials that we need to get our house in order. Finally, China has let it be known that they are upset that we have supplied Taiwan with some modern weaponry - as if we hadn't been doing that for the last 60 years.
So ? Now China is hinting that it may call in all of those notes of ours they are holding, and, presumably ruin our economy.
Hahahahahhahahah oh, aha hahahahahahahahahahahah . . .snort, snort ! !
BRING IT ! !
We owe China $800 Billion. Whoopie. Let's put this into perspective. Our deficit under this first year of the Obama reign will total twice that. The dopey 'stimulus bill' (the second one, not the 1st or the 3rd) amounts to $787 Billion - which sounds a lot like $800 Billion doesn't it? And thats just a one-shot giveaway.
On the other hand, our TRADE deficit with China has been about $400 Billion every year. Tha't 1/2 of everything we owe them (for you in Palm Beach County). While China rapidly has grown from a third world country under Communism, to an economic power thriving under Capitalism (I know, technically they still are commies), It is their trade surpluses with the United States that has financed that renaissance - every bit of it. China runs trade deficits with the rest of the word, about $49 Billion, in case you didn't know (and you didn't).
And why do we run these deficits, anyway? First, because Republicans and their supporters (Hannity, Limbaugh,et al) who understand precious little about Economics, believe that "free trade" supersedes any sane alternative. Second, because, both parties, contrary to basic principles of Economics (Economics 101) have allowed American businesses to send our jobs overseas. Third, because the Chinese, contrary to international agreements that, inter alia, give them most-favored-nation trading status, has deliberately devalued their currency at the expense of their trading partners. Put simply: China keeps the value of their money low, which makes their products cheaper, versus the price of our products. Thus our huge trade deficits.
So, while President Obama bows and scrapes to the Chinese leaders (and every other leader in the world) I might remind you that he also is sending those weapons to Taiwan.
China can't call the notes due; they're not bearer bonds. They are regular ole U.S. Bonds just like the ones you and I purchase - and they aren't paid until the maturity date, way down the road. Now China CAN stop buying in the future, and invest instead in something else, like, oh, Zimbabwe bonds.or Cuban futures; or Venezuelan oil stocks, or gold (Oh wait, they ARE buying gold).
Surely, China can try to persuade other countries to use another currency as the world benchmark. So what? As I recall, when I owned some retail stores in Germany in the 70's, the Deutschmark was the world currency - that worked out well didn't it. Or perhaps we can benchmark the Euro, with a little help from Greece.
While jobs are our biggest concern, many European and Asian countries are experiencing inflation problems - we're all having problems.China will bluster, but they aren't dumb enough to do anything to ruin the country that is sponsoring their economic boom.
WHAT WOULD I DO ?
It wouldn't hurt to get our house in order:
1. Fire the Economists responsible for our dopey monetary policies; (Send Bernanke and Geithner,into oblivion with Paulson, Corzine and all of the other Wall Street racketeers).
2. Throw out all of the Congress. Aaaaalllllllllllllllllll of them.
3. Throw out President Obama. Aaaaaaaaaaaalllll of him.
4. Vote in people who will slash government spending (like me). (click here) 6. If they don't, then slap a 30% tariff on all Chinese imports (and spare me the Smoot-Hawley analogy).(Economics 101) 7. Eliminate all corporate taxes on all "C" Corporations in the U.S. (Economics 101).
8. Did I mention shooting all the lawyers?