The political class yaks about the fiction of our dependency on foreign oil markets, exploded in “The Goods On Gas.”
We are to believe that, while gas trading is oh-so dangerous to America’s national security, accruing debt and selling it to China—that’s just dandy.
China, reports Bloomberg.com, is worried that its “Treasury holdings [will] be eroded by “reckless policies.”
I wonder whose?
BAB readers will know that “China, the U.S. government’s largest creditor, is ‘worried’ about its holdings of Treasuries and wants assurances that the investment is safe.”
“We have lent a huge amount of money to the United States,” Premier Wen Jiabao said at a press briefing in Beijing today. “I request the U.S. maintain its good credit, to honor its promises and to guarantee the safety of China’s assets.”
Honor? Come again!
“White House National Economic Council Director Lawrence Summers, asked about Wen’s remarks, said overseas ‘confidence’ in Treasuries would be hurt without the administration’s steps to end the economy’s decline. President Barack Obama is relying on China to sustain buying of Treasuries amid record amounts of debt sales to fund a $787 billion stimulus package.”
China is enabling Barack as it did Bush. The only reason it doesn’t put an end to the US’s spending addiction is that it stands to lose a lot if it does:
“‘China won’t sell the U.S. debt now as that will only drive down Treasury prices, hurting not only the U.S. but also the value of its own investments,’ said Shen Jianguang, a Hong Kong- based economist at China International Capital Corp., an investment bank partly owned by Morgan Stanley”
“‘China’s purchases of American debt have been one of the few bolts keeping the wheels on the global economy,’ said Phil Deans, a professor of international affairs at Temple University in Tokyo. ‘If China stops buying, where does Obama’s borrowing to fund his stimulus come from?’”
This reminds me how brain dead are the Sinophobes. Beggars can’t be choosy, and they most certainly can’t afford to be as arrogant as the US is.