Tuesday, September 7, 2010

More than all the Tea in China | Capitol Commentary


China, America's banker.
The United States is a debtor nation and China owns about $1.00 for every $10.00 of U.S. debt.  Politicians might be very trendy today calling out U.S. banks for having been so reckless in their spending but, ironically, now China is doing the same thing to our politicians in Washington, D.C.  China has always bought U.S. debt in the form of Treasury securities and now is the largest holder of U.S. debt in the world having recently surpassed Japan.  One of the many differences between Japan being the largest U.S. debt holder and China is that we did not write China’s constitution and do not have military bases in their country.  With the massive spending bill having been signed into law by President Obama ($787 billion and counting) China is getting antsy that America is squandering their resources:
“We have made a huge amount of loans to the United States. Of course we are concerned about the safety of our assets. To be honest, I’m a little bit worried,” [Chinese Premier] Wen said at a news conference following the closing of China’s annual legislative session. “I would like to call on the United States to honor its words, stay a credible nation and ensure the safety of Chinese assets.”
So this is what has become of such a fine nation as the United States!  To be fair to President Obama, reckless spending of taxpayer monies did not begin under his administration but he certainly did not improve the situation by signing into law the largest spending bill in the history of this country, a sum larger than the total costs of the war in Iraq and Afganistan.  As when any bill collector calls there were soothing words in response:
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