Well, if they were capable of learning anything …
In the Republican debate held on November 22, 2011 Michele Bachman made the point that the U.S. is “in hock” to China and that the interest payments made to China were/could be used by the Chinese military. Sound good?
I have commented on this before at:
In the final analysis debt has crippled the world’s great powers. In fact the United States assumed global leadership from England because of England’s debt. It is interesting that England tried to impose capital controls to keep people and their money in the country. FATCA – “neutron bomb of the financial system” – is an attempt to keep capital and therefore people in the United States. FATCA is the “Berlin Wall” of the United States. The United States will cease to be a great power because of its excessive debt. Sir John Templeton – one of the world’s greatest investors – once said that:
“Those who spend too much will eventually be owned by those who are thrifty.”
China has a very high savings rate. China also owns a mind boggling amount of U.S. debt. China wants it currency to become the reserve currency of the world. China has stated that it will NOT comply with FATCA. The United States government pays massive interest payment to China each year. As Mark Steyn has pointed out – these interest payments provide China with the money to build and build and build (this means increase) its military. Does that sound pleasant?
“By 2010, about half our debt was owned by foreigners, and somewhere over a quarter of that was held by the Chinese (officially).
What does that mean? In 2010, the U.S. spent about $663 billion on its military, China about $78 billion. If the People’s Republic carries on buying American debt at the rate it has in recent times, then within a few years U.S. interest payments on that debt will be covering the entire cost of the Chinese armed forces. In 2010, the Pentagon issued an alarming report to Congress on Beijing’s massive military buildup, including new missiles, upgraded bombers, and an aircraft carrier research and development program intended to challenge U.S. dominance in the Pacific. What the report didn’t mention is who’s paying for it.
Answer: Mr. and Mrs. America.”