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March 18, 2009
The Facts
Chinese Premier Wen Jiaboa says he is very concerned about his country’s investment in America. So far, China has loaned the US $1 trillion. According to this Washington Post article, Jiaboa said “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”.
My View
Debt – sooner or later, it has to be paid. And it appears China may be demanding payment sooner than later. To tell you the truth, I can’t say as I blame them. Our ability to repay our debit is rapidly diminishing. The working people in this country are already taxed out, and the wealthy & corporations, with the backing of many in Congress & other arena’s, are demanding they pay little or no tax.
However, owing China a bunch of money we can’t repay may be the least of our worries with them. China is buying up natural resources by the “train loads”. That is, they are “locking up” supplies of oil, minerals, metals and other strategic natural resources, according to the article. That means two things for us; prices are going to skyrocket, and we could be left with no natural resources in a time of crisis, such as a major war with someone – say China.
Most of that stuff is cheap by today’s standards, and China is not only debit free, but has plenty of capital to spend. History has proven many times over that when a country or society goes bankrupt, the end is near. And with the help of Wall Street, we just thought we were a bankrupt country before.
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