Re: ECONOMICS: Chinese propping up U.S. Government?

From: Adrian Tymes (wingcat@pacbell.net)
Date: Tue Sep 02 2003 - 16:39:45 MDT

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    --- "Robert J. Bradbury" <bradbury@aeiveos.com> wrote:
    > Ok, here is an idea for you, based on:
    >
    >
    http://www.nytimes.com/2003/09/02/business/02CHIN.html?hp=&pagewanted=printrX
    >
    > (which you have to get in the next few days for
    > "free")
    >
    > China is on track to purchase ~$80 billion of U.S.
    > government securities
    > this year. That is about 20% of the current budget
    > deficit.
    >
    > Bottom line (perhaps) -- we can't touch them and
    > they can't touch us
    > (or all hell breaks loose). Interesting -- it would
    > seem that the
    > Russians are side-lined from 'balance of power'
    > debates -- at least
    > from an economic perspective.

    Cute. Instead of nuclear Mutually Assured
    Destruction, we're playing with financial Mutually
    Assured Destruction. One wonders if this is perhaps
    more dangerous, because a short-sighted leader on
    either side could see that immediate war would not
    have consequences until at least the next budgetary
    cycle, which could be beyond the present leader's term
    in office - especially on the US's side. (See the
    present administration's troubles in that regard.)
    But, that aside, it is far safer for those not in
    power.

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