If they don’t buy, we die.

[Traveler 45C]

If they don’t buy, we die.

I am deeply concerned over the Obama administrations reliance on the Chinese and other foreign governments funding our bailouts, federal budget, and stimulus packages through their buying of our treasury notes.

In much the same manner as the Obama administration dictating the firing of corp. CEO’s and limiting executive salaries through the use of bailout money, China can effectively influence and may even dictate US Government policies by threatening to stop buying. China can potentially influence the US government to enact policies that benefits them, not us. This puts us in a submissive position to China and amounts to a Chinese takeover of our government.

They can effectively blackmail our government into submission.

If they don’t buy, we die.

This must stop and stop now.

The US debt must be reduced, not increased. We must not allow foreign governments to have influence over our government’s policies.

All Americans must be made aware of this potential economic war on our country. A national debate on this topic may make Americans mad enough to get involved to put an end to this excessive borrowing.

 

[Nonchalant1]

Re: If they don’t buy, we die.

I don't get it.

Treasury auctions may have to go up in rates before they sell, but if China doesn't buy, others will. US Treasury's are still extremely well respected by all investing countries and individuals, so as the rates go up (it's an AUCTION after all) they'll sell, right? And China can KMA.

Doug

 

[Genesis]

Re: If they don’t buy, we die.

Hahahahaha....

Uh, you might want to check the numbers on "rates might have to go up", and what has happened to duration the last few years.

Look at the interest paid last year and multiply that by, oh, five or so and tell me how the government manages to fund itself (which is exactly what a duration dislocation from foreigners could do.)

 

[whaler23]

Re: If they don’t buy, we die.

Just like the recent GILT auction failure oversees, if we're the high bidders it's one big circle...

 

[spindrift]

Re: If they don’t buy, we die.

Interstingly, this question came up in a talk I gave last evening in Riyadh Saudi Arabia. The key is the Chinese are stuck. They may not like holding the US paper but then again they need to support the US economy as we are the primary market for Chinese exports. I would rather have the TVs and let them keep the paper!

Spin

 

[krush]

Re: If they don’t buy, we die.

Obama is going to provide the warranty on your vehicles too....

 

[Traveler 45C]

Re: If they don’t buy, we die.

Correct me if I’m wrong…

So, in elementary terms, our government gets the money from china and through various means (stimulus, less bankruptcies, mort assistance) gets it into the hands of the consumer. They in turn spend it on Chinese goods. The borrowed money, along with the profits return to china.

Not only are the Chinese reaping the profits, they are also enjoying the interest on the money borrowed in the first place.

This is stupid.

We end up with cheap products, job losses and the largest debt in US history.

What’s the up side for us?

 

[Boatsb]

Re: If they don’t buy, we die.

You need a Harvard education (preferably one you did not have to pay for) to understand the upside for the US.

 

[SKYCHENEY]

Re: If they don’t buy, we die.

You need a Harvard education (preferably one you did not have to pay for) to understand the upside for the US.

And you need a Hawaiian birth certificate.

 

[Boatsb]

Re: If they don’t buy, we die.

No you don't. At least not an original. Some agency can just issue something about you being born somewhere somehow.

 

[GJH]

Re: If they don’t buy, we die.

Our previous president was an Andover prep, Yale BA and Harvard MBA and he was all for this set up. No wonder it makes us all uncomfortable, 'cause now an effin' lawyer is for it too!

 

[spartonboat1]

Re: If they don’t buy, we die.

Obama is going to provide the warranty on your vehicles too....

Well, this will not be the first time GM has hit the wall. The original entrapeneur that "assembled" GM was Billy Durant of Flint, MI. He was booted out (in the 20-30's) and wound up running a bowling alley in Flint, where he died broke.

All this bad stuff started for GM in the 60's and 70's, when they began to blur their product lines. When Chevies got power seats, windows, and A/C, instead of remaining the entry level car, it was downhill. Remember the Chevy-mobile (Chevy engine in an Olds), etc., etc.

 

[kwerges]

Re: If they don’t buy, we die.

An interesting view was expressed the other night. Simply stated, Obama appears to be ready to bail out the banks with a program he knows will fail, so ultimately he can nationalize the banks. Over the weekend he begins running car companies, telling GM who can manage and telling Fiat what kind of cars they can produce with Chrysler. Use to sound like a far-fetched conspiracy theory...

 

[dr.b]

Re: If they don’t buy, we die.

Wait for the great dollar devaluation--its underway. Once Obama really starts to devalue the dollar, the trillion dollars that we owe the Chinese will be a lot less. Of course, with the great inflation that is also coming, the debt to the Chinese will dwindle. Obama's plan is wrecking our economy and with it many of our rights, but one positive effect will be to devalue the huge debt we owe to China. Dr.B

 

[BUSTER]

Re: If they don’t buy, we die.

No you don't. At least not an original. Some agency can just issue something about you being born somewhere somehow.

This whole scenario is beginning to remind me of an "Omen" movie with Obama playing "Damien." Everything about this guy disturbs me.

 

[Skip]

Re: If they don’t buy, we die.

No experience, no common sense, and unable to understand history, we are going to end up like England after OBAMA's socialism experiment is finally over. Many of his ideas have been tried before with predictable results. I fear socialized health care will put us in a deep recession that will take years to recover from.

 

[Boatsb]

Re: If they don’t buy, we die.

How will anyone take away entitlements from the voting majority? If Hussein gets socialized healthcare and other programs going there will be no recovery.