Robert Scheer: The Chinese Come Calling

[marmar]

from Truthdig:



The Chinese Come Calling
Posted on Jul 28, 2009

By Robert Scheer


What a hoot. The Chinese Communists invaded Washington on Monday demanding not that we sacrifice our freedoms but rather that we balance our budget. Creditors get to make that kind of call. And the Marxists of Beijing, who have turned out to be the world’s most prudent bankers, are worried about their assets invested in our banana republic.

“China has a huge amount of investment in the United States, mainly in the form of Treasury bonds. We are concerned about the security of our financial assets” was the way China’s assistant finance minister put it. Briefing reporters at the U.S.-China Strategic and Economic Dialogue, he added, “We sincerely hope the U.S. fiscal deficit will be reduced, year after year.” Quite sincerely, one suspects, given a U.S. budget shortfall this year that is slated to reach $1.85 trillion.

Suddenly, it was U.S. officials who were promising deep reform to their disgraced economic system rather than demanding it from incompetent foreigners. President Barack Obama’s economic team of Clinton-era holdovers, who a decade ago had hectored China on the virtues of fiscal responsibility, now were falling over themselves to reassure the Chinese that their $1.5 trillion stake in U.S. government-issued securities is safe, and that they should buy more at this week’s $200 billion Treasury auction. If they don’t, we’re in big trouble.

U.S. Treasury Secretary Timothy Geithner promised to behave, saying the U.S. is “committed to taking the necessary measures to bring our fiscal deficits down to a more sustainable level once recovery is firmly established.” Now let’s hope that the Chinese Communists and their natural allies among congressional deficit hawks will be able to keep him to his word. ...........(more)

The complete piece is at: http://www.truthdig.com/report/item/20090729_the_chinese_come_calling/

[Joanne98]

1. I could have smashed my tv.