Is It Wise To Keep Using China As A Credit Card Or Should We Improve Our Economy At Home Like Obama Says?
Posted by China Sourcing CommentatorSep 16
When you find yourself in a hole the first thing you need to do is stop digging. The National Debt will be triple from what it was when Bush was first elected before he leaves office. McCain is suggesting band aids. The 180,000,000 his promise to stop earmarks will save is very good intentioned but the interest alone on the national debt was 431,000,000,000 for the last year, so it doesn’t even qualify as a good start.
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The answer is both. China buys USA debt because of faith in our economy and is an investment. It cannot be held as blackmail because China would lose their money and all the USA would lose is a creditor. It all but prevents a war between the USA and China started by China. It is part of the process started by the Nixon administration and taking off under Reagan to bring China into the world economy as a respectful partner. The change has been slow but not short of miraculous.
The key to worldwide prosperity is a strong US economy and it is the best way to increase American living standards so, of course it is a good idea. As long as the government keeps its sticky fingers away from the day to day workings of business, it will continue to rise as it has since the 1700s (at least for the next hundred years, anyway).
The unfortunate thing is, to lower the debt, one has to target the sources and the out of control growth of spending on social security, welfare, and medicare that already consumes more then 50% of the budget and is growing at a huge rate are political suicide for either party to mess with in an all but superficial way. The answer has been for so many years to continue the steady growth of the US economy but that cannot continue forever.
I don’t see much out of Obama that would indicate that improving the economy is on his list of things to do.
And it’s China that are the fools. Do they really think they are going to ever see that wealth again?