The Dalai Lama recently commented on Secretary of State Hillary Clinton's unwillingness to publicly discuss China's flagrant abuses of the Tibetans by stating "he who pays the piper calls the tune." Specifically the Dalai Lama was referring to the power that China holds over the US as its largest creditor. In order to finance massive deficit spending, the Bush and Obama administrations sold nearly a trillion dollars in treasury bills to the Chinese government. His holiness is correct - by placing our basic finances in the hands of a foreign government we are granting that government considerable leverage.
Almost immediately after a clash between the American and Chinese navy in international waters, the Chinese Prime Minister Wen Jiabao publicly expressed his concern about the safety of its treasury bond holdings. Those who view this simply as commentary on economic matters are woefully ignorant of international affairs - China was sending a clear message to the US that if we didn't comply, there would be grave economic consequences. The naval engagement was a test and Obama's acquiescence was a dangerous failure that will encourage future aggression.
So, the concern over the size and scope of the government is not simply a philosophical concern; the direct consequence of Bush's and Obama's expansion of the state is uncontrolled borrowing, which has not only eroded our economic and social well being, it has eroded our very sovereignty.
http://www.upi.com/news/issueoftheday/2009/03/13/Chinas_PM_Wen_nervous_over_holding_US_Treasury_bonds/UPI-93811236960563/
Though it needs to be said that the U.S. also has power over China because we buy all their shit. It's an economic resemblance to the mutual destruction pact the U.S. had with the Soviet Union.
ReplyDeleteThat is correct - at its core it is a mutually unsustainable relationship.
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