The Chinese Would Like to See Our Homework

How bad our country’s balance sheet must be that we are sending our Secretary of State and Treasury Secretary to China…to beg…to promise…we’ll behave?

U.S. Treasury Secretary Timothy Geithner arrived in Beijing with a pledge that the Obama administration will control its borrowing, seeking to reassure China that its Treasury holdings are safe.

“No one is going to be more concerned about future deficits than we are,” Geithner told reporters en route to two days of meetings that start tomorrow in China’s capital.

Interesting word choice: “No one is going to be more concerned about future deficits than we are.” In the mean time, being liberals, the only thing this administration knows how to do is spend more and tax more – under the guise of economic “rescue” this time.

The Chinese however, who hold more of our debt than anyone else, can do math, and they too have noticed that every time Brack O. Bomba opens his mouth, another trillion dollars is stolen from our children.

A Chinese state media report today said that 17 out of 23 Chinese economists polled in connection with Geithner’s visit said that holdings of Treasuries are a “great risk” for the nation’s economy.

Let me pause to underscore the notion that the Chinese feel our economy poses a great risk to theirs.

Geithner needs to show how the U.S. can prevent the value of China’s debt holdings being eroded by a weaker dollar or by inflation driven by the stimulus money being pumped into the U.S. economy, according to Yu.

“It will be helpful if Geithner can show us some arithmetic,” he said.

Uh oh. That’s trouble. Math is no friend of the Obama administration.

There aren’t arithmetic or historic data depicting successful outcomes of huge government borrowing to fund huge government spending to counter a crisis caused by huge government, corporate and consumer borrowing. Rather, the arithmetic will show catastrophic devaluation of the dollar – the very inflation the Chinese are fearful of.

How do you say “Oops” in Chinese?

8 thoughts on “The Chinese Would Like to See Our Homework

  1. The Chinese have good reason to be concerned. America has been it’s cash cow for many years. We are the reason for all of that smokestack industry they’ve been using to keep their huge population employed. The combination of our insolvency and the evironmental extremist insanity must be giving them fits.

    If Obama’s house of cards comes down (as seems inevitable), China can always do what nations have done throughout history. Mount an army and invade. They can field an army equivilent to the entire population of the US. Maybe they would take Alaska has a peace offering. Obama doesn’t like Sarah Palin anyway…

  2. So this is how globalization works: we send our manufacturing jobs to china because labor is cheaper there & they still think that a skyline of smoke-belching factories means wealth. We inflate our real estate, take out equity loans, and buy manufactured goods from China. The Chinese then take the money we sent them and buy our government debt.
    This does not seem sustainable in the long term.

  3. Bill C gave the characters above- I believe they’re pronounced:

    “Ai-yo!”

    In Hong Kong, where most people speak Cantonese, that would be:

    “Ai-yaa-a-a!!”

  4. Almost, Terry.

    Globalization means sending US jobs (not just manufacturing jobs) to China and India (and Brazil and …). In return, they send us cheaper goods.

    We pay for those cheaper goods with paper money from people who still have jobs.

    Rather than take that money overseas, which would increase their currency relative to the dollar and cut sales, the foreign governments buy US debt, both government and commercial.

    Because of the monstrous volume of debt now in foreign hands, there’s a lot of money sloshing around the US looking desperately for returns. So you have things like dot com bubbles, housing bubbles, etc.

    But Obama is fixing that. By spending and borrowing like a true leftist drunken Democrat he’s destroying the dollar.

    By the time he’s done, oil will be ridiculously expensive since the dollar will be so low, and our currency will be cheap compared to China’s because we’ve inflated our debts to them away, so manufacturing overseas won’t make sense anymore.

    Whether we’ll have any enterprises not owned by the government and thus able to take advantage of the situation is another matter…

  5. The Fresh Prince of Bill Ayers might have to make a personal appearance before the National Congress to assure the Communists that their capitalist investments are secure…maybe throw in a couple of kowtows.

  6. I prefer the invisible hand to the heavy hand of government.

    How do y’all like the CHANGE toward Liberal Fascism?

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