While searching for a topic and a little inspiration I came upon an article written by Bill Gertz of the Washington Times titled, "The Chinese see U.S. debt as a weapon". http://www.washingtontimes.com/news/2010/feb/10/chinese-see-us-debt-as-weapon/. In the article the author quotes Chinese Major General Luo stating that China could Attack the U.S. "By oblique means and stealthy feints," as well as calling for retaliation for the arms deal that the U.S. made with Taiwan. The article goes on about how China's military has made a call for a sell off of U.S. debt backed securities. It seems to me that tough economic times have lead the U.S. to the wrong side of town where we have borrowed an 800 billion dollar bank role from a shady character. In a prior blog post someone stated that with the recent arms deal between the U.S. and Taiwan we have pissed off our friend. However, a communist society with volitile military leaders and questionable human rights views could hardly be a true friend. Is it wise to borrow money from a country and then turn around and make another deal with an enemy of theirs?
As a country they have volitile leadership, are largely populated and supposedly are growing at a healthy rate. Now, with the amount of U.S. Treasury debt China holds, it feels to me we have allowed them the leverage to influence our economy as well? How many more aspects of power can we allow them to have before they realize it and begin to abuse it? I'm not a nay sayer but it seems to me that at the moment we as a country are in a bit of a hole and the first thing to do is stop digging and begin paying off our debts.