China "worried" about Treasury holdings PDF Print E-mail
Written by Stumo   
Friday, 13 March 2009

Our President sent warships to confront China last night.  China is our biggest banker.  We have a trade deficit that exports capital to Asia at record amounts.  

Hillary Clinton asked China to continue buying our Treasuries, the very actions that led us to become the world's biggest debtor nation.  And, did I mention that we are sending warships to the South China sea?

What is wrong with this picture?  Geopolitical strategy?  What is the strategy?

Now another front opens, by golly.  Who could have known?

Chinese Premier Wen Jiabao said Friday that he is "worried" about the country's vast $1 trillion holdings in U.S. Treasuries and that China will pursue a policy of diversification when comes to its future foreign exchange holdings.

No mention of the military activity, which has been on again, off again.  But there is "worry."

"We have lent a huge amount of money to the U.S. Of course we are concerned about the safety of our assets. To be honest, I am definitely a little worried," Wen said.

This is what happens with a global capital imbalance.  When we export record amounts of dollars to be used by a geopolitical rival.  An imbalance caused by the trade deficit, which was caused by the non-tariff barriers that wacko free traders ignore.

How about this strategy?  Countervail the non-tariff barriers.  Reduce and eliminate the trade deficit in rational strategic steps.  Thereby reducing our debtor status.  Thereby reducing the power of our bankers.

Or we could do nothing.  Maybe pass another trade agreement.

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written by bob johns , March 14, 2009
There was a day in this country when its leaders recognized the same perils the US public sees (and if they don't see it through the DC fog are quick to "get it when the fog is removed) and actually had the courage to act and correct. We're seeing a major hole in leadership on the part of those who pretend to lead. Every two years we have a chance to cull the herd.
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