by Lori Miller
(Fl., USA)
We are borrowing money from China. China…? China is the second world's largest economy. The US is currently the world's largest economy, but rapidly slipping to second place. Is the world's largest economy in such decline that we need to borrow from China to cover our out of control spending habits.
China's creation of wealth is because they produce and export more than they import. Wealth is producing abundance over what you consume.
"Wealth is having an abundant accumulation of economic assets minus liabilities". Our nation's wealth is in decline. "Our Government borrows nearly 40 cents out of every dollar the government spends". "Our debt is currently at 12 now 13, 14 now 15 and soon to reach 16 TRILLION and counting". Why is China still willing to loan us money? If China sees our out of control spending with no serious attempts to reign in our spending, why does China still loan us money?
With our current thirst for spending, we are on a collision course to bankruptcy. With our current thirst for spending, why is China still buying US debt? With our current thirst for spending, why is China so willing to invest in the US economy?
China's interests are for China. China is not investing in the US economy. China sees a different wealth reserve that they are willing to invest in. China sees our vast untapped oil reserves. China sees our natural gas and coal reserves as a worthy investment for their money.
The US debt to China that our government is incurring is debt borrowed against the future income of US citizens. At the current rate of spending, the future income of the citizens does not look good. The US debt to China is a public debt owed by the citizens. The US citizens are responsible for the US debt held by China. The massive US debt to China is dangerous. IF the economy goes broke, so does the coal, natural gas and US oil interests. Can you guess what the debt reduction negotiation for payment of the US debt to China would be?