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CHINA is worried about OUR federal debt!

You heard right. China is worried about our federal debt.

China has surpassed Japan as our #1 holder of U.S. Treasury debt.

Analysts estimate that nearly half of China's $2 trillion in currency reserves are in U.S. Treasuries and notes issued by other government-affiliated agencies.

This is the part that you should really get you thinking - I mean for those of us that are still thinking during the Obama administration:

Washington is counting on China to continue buying Treasuries to fund its $787 billion stimulus package.

And the US is betting, and I do mean betting, that China continues buying our debt so we, the USA, can proudly and ignorantly march into socialism.

During George W Bush's presidency, we were talking about adding billions to the federal debt. We surpassed that ten and twenty fold - now we are talking $$ trillions $$ of dollars - and the Chinese resent every bit of it.

China resents having to buy our debt because our economies are so intertwined nowadays. Our economic health is their economic health also.


I wish the United States federal government would adopt the policy parodied by Steve Martin on SNL:

Comments

( 3 conspiracy theories — Conspire Here! )
keith_london
Mar. 13th, 2009 06:08 pm (UTC)
To be fair, China liked to invest in US bonds because they trust the US! US and China ("Chimerica") are now in such a tight economic embrace. We need China to continue trusting the US. IF they don't confidence will be even worse.
dgreatone
Mar. 13th, 2009 10:13 pm (UTC)
The news over here stated today China "expressed concern" about US Treasuries asking our feds to "safeguard their value" so America "does not damage the value of Chinese holdings".

http://www.breitbart.com/article.php?id=D96T2TT81&show_article=1
keith_london
Mar. 13th, 2009 10:35 pm (UTC)
I can see why China is "concerned" (not for the US primarily, but for itself!) But it was a vote of confidence in the US economy when they chose to put their so much of their money into it in the first place. The Chinese love to save whilst the Americans love to spend - so a lot of Chinese savings found their way into the US - lent to Amricans (see this article re "Chimerica"). It is therefore in China's interest to keep on buying into the US economy! (But will that "symbiotic" relationship continue?)
( 3 conspiracy theories — Conspire Here! )