Friday, April 5, 2013
China . . . Where is Our Money?
During the early 1900’s China issued bonds to millions of Americans who purchased them because our US Treasury bought in on the deal when they were promised we would be paid on full faith and credit.
Communist China has their hands on $1.4 trillion in U.S. Treasuries, but unlike them, the good old USA has never defaulted on those Treasuries. However, the US Treasury and 315 million Americans whose tax dollars were used to buy those Chinese bonds . . . are owed $750 billion. Over the last sixty years, China has refused to pay any of it. Worldwide, China owes an estimated debt of several trillion dollars as it goes around bragging to all of humanity about its economic growth and influence.
Several of those countries owed have said they would bar China from their financial markets if they were not paid back. Somehow China was able to dig deep into their hidden piggy banks and found the means to repay them.
If the People’s Republic of China were to pay its debt to American citizens and the U.S. Treasury we wouldn’t have had to raise our debt ceiling.
Obama’s first stimulus package was around $700 billion plus which some of it went to Chinese companies, even though billions of unpaid debt remained outstanding.
Our politicians are flirting with the idea of default, while millions of Americans are being asked to reach into their pockets to help pay down a deficit they can’t afford.
Fitch analysts say “the debt ceiling is an ineffective and damaging mechanism for enforcing fiscal discipline. Ineffective because it is not simultaneously decided with budgetary decisions that determine the volume of borrowing by the federal government and damaging because the implied threat of default undermines confidence in the full faith and credit of the US.”
Our current debt ceiling is set around $16.394 trillion, we are now in what we call the “sequester.”
Currently the United States is rated Aaa by Moody’s, while Standard & Poor rates the US at AA+, not exactly a glowing review of our credit.
China in an attempt to embarrass America saw fit to say that the U.S. “should cure its addiction to debts,” . . . it would only seem fair for President Obama to ask the Chinese to help us cure our addiction by paying their debts.
Playing the 'poor me' fiddle to the American Public we are told that we are in debt, we have no money, and yet we are paying interest to a bondholder who won’t pay us the principal on their debt to us . . . . Mr. President, would it be too much of you to make a legislative decision and tell the PRC “it is our money, and we want it now?”