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IPFS News Link • China

China Dumping US Treasury Bonds!

• Charles Goyette
What Message is China Sending with a $34 Billion Drop in it Holdings of US Government Debt? A lesson needs to be learned about what happens when the government get in the practice of doing favors....

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Comment by Ross Wolf
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The Chinese Communist Government has usurped U.S. global economic power, by allowing Congress to borrow billions from China. China need only raise its interest rate on U.S. Loans or call its loans to potentially cripple U.S. military defense budgets. A default by U.S. Government on China loans would destroy U.S. credit ratings and the dollar globally, particularly with oil producing nations that accept U.S. Dollars. U.S. Government would have to impose higher taxes on U.S. Citizens and corporations to pay escalating interests on China loans, shrinking U.S. Citizens’ discretionary income needed to buy American products and services, resulting in greater U.S. unemployment. U.S. borrowing and deficit spending has run the debt ceiling past 14 Trillion, at some point that will strangle the U.S. economy. Meanwhile China is restraining its economy from expanding. The recent Supreme Court decision in Citizens United v. Federal Election Commission appears to put corporations at par with "natural persons", i.e. humans eliminating limits on corporate political contributions. China can now use both its financial interests in corporations it owns in the U.S. or has interests, to exert its economic power to influence U.S. foreign policy; and on federal/state legislation that could affect the U.S. economy, even American democracy.


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