In China, Obama Meets America's Lender

(CBS)  As President Obama makes his way through China this, his visit may help to highlight an often-overlooked part of the U.S.-China relationship: China's role in propping up this country's massive debt. When it comes to the nations the U.S. owes money to, China is at the top of the list - and the numbers are staggering, as CBS News correspondent Hari Sreenivasan reports.

When President Obama meets with Chinese President Hu Jintao, there may be less lecturing and more listening because it is hard to talk tough on trade, Taiwan, and Tibet when you're sitting across the table from your biggest lender.

The Chinese own more U.S. government debt than any other nation - about $800 billion worth. And the U.S. pays China $50 billion a year just in interest.

"President Obama is concerned about taking China on on trade, the environment, and a whole host of issues," said University of Maryland economist Peter Morici, "because he's concerned China won't buy our bonds."

China is carefully watching how the Obama administration spends money on bank bailouts, expanding health care, and combating climate change - as any big investor would.

"Today, Beijing is asking the Americans very detailed questions about the health care reform, wanting to know how we spend every nickel they lend," Morici said.

While President Obama campaigned on the idea that China artificially keeps the value of its currency low - which makes Chinese goods cheaper and U.S. goods more expensive - this spring, the Treasury Department backed off issuing a report saying China "has taken steps to enhance exchange rate flexibility."

"What's changed really is China's weight in the world," said Evan Feigenbaum of the Council of Foreign Relations. "The capacity that China can bring to bear for good or for ill around the world is much greater. So the challenge of working with China in a whole variety of areas is much greater."

China's economy also suffered from the global recession and implemented its own stimulus program, which in turn could stimulate America's economy.

"It would offer more new opportunities for American exporters, because Chinese consumers with money in their pocket would be able to buy competitive American products," Feigenbaum said.

The fact is that the U.S. and China are inextricably linked. The challenge is turning common interests into complimentary policies.

[Omni-Present101]

________________

1. Republicans, Prescott Bush & George H.W. Bush have long been the True-Authentic Chinese Connection.

Thank them for opening the Doors, so that the USA would soon be Borrowing Billions and Competing with the Largest Communist-Socialist Country on Planet Earth.


2. Former Republican President Richard Nixon via his Bush Connection, Ushered the Chinese Road To World Dominance, that we see Today.

Making Your Enemy Stronger than You, is the Dumbest Foreign Policy Ever and it was Done Mainly by Republicans, i said [Mainly]

Thanks a Lot.


3. Carter didn't stay in Office long Enough to be of any Consequence on the Chinese Incline.

4. Ronald Reagan and his Staff also, Added and Padded, Chinese Forward Progress.

5. George H. W. Bush Continued Chinese Incline in his 4 years, what he and Prescott Bush had Started long ago.

Thank George and Prescott Bush, A Lot.


6. Democrat President Bill Clinton, when he came along, the Wheels Of Motion had already been set and Running, still, Bill Continued the Chinese Momentum, that was started by his Fore-Running Presidents.

7. President George W. Bush, Gave American Businesses, Big Tax Breaks, Big Financial Incentives, to Leave the American Labor Force, for the Green Pastures and Dirt Cheap Labor of Communist-Socialist China, all at the Expense of American Workers.

8. President Obama is trying to Walk that line of getting China to Increase the True Value of the Chinese Yuan, Become Equal Trading Partner with China, via China Buying more Goods from American Manufacturers and Get us out of these Two Wars, that has really put this Nation, in Major Debt, to Communist-Socialist China.

Think: We have Borrowed 20-Billion Dollars per Month, with Interest, for the Past 8 Years and Counting, to Communist-Socialist China.

No matter what President Obama does to Improve our Nation, if We continue these Two Wars, we're going to go [Bankrupt]


Oh by the way, the Interest is 500 Million Daily.

Go to www.DefeatTheDebt.Com

To Understand how our Borrowing Billions from Communist-Socialist China, has put our Nation in Generational Debt, Compounded with Wall Street, Morgan-Stanley, Bear-Sterns AIG and the Bank Bail Outs.

__________
Fox News, Limbaugh, Beck Hannity, Dobbs, Praeger, Savage and Republican Radio won't tell you, what I told You.


[[ Think !! ]]

____________

KABUL (Reuters) - U.S. President Barack Obama aims to bring the Afghan war to an end before he leaves office, he said on Wednesday.

President Obama Knows, these Wars are Financially-Fiscally Unsustainable.
______________________

[brendett]

Let us hope that President Obama paid China back the money that George W Bush borrow from them!....The 8 billion dollars for the War.

[hungry1968-17]

by ch2444 November 15, 2009 11:41 PM EST
Somebody unplug the teleprompter please...

Oh my god, now we have Bush II

Bush lead around by the Pinkie, Obama bows like a moron.

What a couple of jokes.






You do realize that the "bow" is a standard Chinese greeting, and not a sign of subservience, don't you?

[daffy64]

No. He didn't know that.

Doesn't get out much.

[michaelm07]

Yeah, Obama had to go and while in Asia, check-in with one of his handlers. Another being the Saudi's, among others. He's worthless and Bush was no better.

[bubbadubba]

And when did China become America's lender?
Mostly in the past 8 years.
And who was in control in the past 8 years?
GW Bush and mostly Republicans.
And who was regulating all the companies moving to China and Wall Street deals with China in the past 8 years?
No one.
And how long as the US been in debt?
Almost from day one but it really got going starting the the 50's, got worse during the Cold War, then got huge during Vietnam.
See a surplus is simply what is left over each year after loan payments and that year's budget, it does not mean the US has no debt.
To say the US is bankrupt is technically old news.
One more point, few people know the US prints the money, sells it cheap to the privately owned FED, then the private corporation called The FED loans it back to the US government with interest.
How's that for a sweet deal?
Have a great day folks.

[KipperD]

And Obama is giving us more of the same. Are you defending him? or are you saying because it's Obama it's OK now? Mr. Bush is no longer the President. Let's find a new excuse.

[ObamaHatesAmerica]

Actually, the whole Fed ripoff was hatched by a Democrat administration prior to WWI. Every president has been complicit in the fraud, including Oblowme. Hate inflation? It's a byproduct of YOUR WEALTH being STOLEN by YOUR OWN GOVERNMENT to send to overseas bankers. All of your leaders are part of the theft, and you're not going to do a damn thing about it.

[Lickedy]

I think the Chinese are only trying to pull us down to there level, why not, corruption here is at it's all time high like China now ? All of our jobs are over there, and we're told to go back to school and learn how to flip hamburgs for 8 bucks an hour. Well, if you don't, then you can always hang a homeless sign on your chest and make $200 a day.

[Dgunner]

The chinese enslaven thier children of poor families who can't pay thier taxes. They pick and choose who gets the free ride college based on grade point but mostly on how much that paticular famys' gross income and thier business ranking.A good little communist gets rewarded the no so good get sold enslaved or starved out .We in the U.S fight against tax payers money for abortion and argue free choice.In china they sell thier kids to sex slavers and pedophile perverts who pay to rape and sodomize children and call it global tourism.So instead of killing our babies and babying our killers.Maybe we should follow the path of chinese GDP and put our killers to work in dangerous coal mines and sell the babies and adolesent children to the sex industry .we would save billions on fighting pedophilia and tracking sex offenders because they would all be mining coal. Lest I forget to mention the billions of potential US wealth being stolen by copying our patented inventions and reselling back to walmart no heart monopoly.Maybe if we just set aside our morals of christianity or any religion of the bible take up buddaism or the other asian idolatry religions and buy all chinese and asian goods we might gain more confidence in the lending and borrowing of global assets.This up coming thanks giving remebr the chinese and asian children when you pray over your thanksgiving dinner that you saved so much money buy purchasing the food at wal-mart no heart dept. chain.Tallturtle Sevenstar of the wolf clan of the Great Nation of the Cherokee tribes.

[2012EOD]

In Detroit - This is the state of America, and we wonder why we are in trouble.


KEN ROGULSKI: Why are you here?

WOMAN: To get some money.

ROGULSKI: What kind of money?

WOMAN: Obama money.

ROGULSKI: Where's it coming from?

WOMAN: Obama.

ROGULSKI: And where did Obama get it?

WOMAN: I don't know. His stash. I don't know. I don't know where he got it from but he's giving it to us, to help us. We love him. That's why we voted for him. Obama! Obama!

[tmittelstaed]

This article is rather silly. It talks about the existing debt like that debt gives the Chinese investors some sort of hold over the US. In reality, it does not.

People think that this kind of debt is like a mortgage on their house. That is rubbish. In a mortgage situation the bank can foreclose and sell the home to someone else for more money, as a result the bank has all the power. The borrower knows that they have to keep paying the mortgage or they lose their home.

With this debt, if the US stopped paying it the Chinese cannot foreclose. In short, the Chinese have no guarentee that the US will ever pay it back - other than the fact that the US Government has lasted 233 years and never defaulted on money that has been loaned to it, and GUARENTEES the interest rate. How many other governments in the world can you point to and say that about. Practically none. That's why wealthy Chinese are buying T-bills from us, instead of their own government.

The Chinese government would LOVE to be able to have the world's wealthy buy their bonds, they would love for their own citizens who have gotten rich to put their money into the Chinese government. If that happened it would stimulate the Chinese economy tremendously. Instead, because the US is more reliable, it's our economy that is being stimulated.

If the US wants to get rid of Chinese debt the answer is rediculously easy. Balance the budget. All of these treasury bills mature in 20 or so years. So, if the US runs a balanced budget for the next 20 years - then all by itself, the national debt will vanish. And, balancing the budget is easy, you just increase income and decrease expenses - that is, cut spending and raise taxes at the same time. You don't cut spending then claim that this allows you to cut taxes, and you don't see tax revenue increase due to a healthy economy then claim that this allows you to cut taxes, like the last moron in office. Clinton handed Bush a balanced budget, all Bush had to do was do nothing - not cut taxes, not increase spending, just keep the budget balanced - and the US would have paid off close to HALF the national debt by now.

No, what people don't realize is why Obama is over in China talking to the investors there. It's not because he gives a fig about the EXISTING debt. It's because he wants to have the Chinese investors BUY A LOT MORE treasury bills, that's why.

If the US government makes a T-bill offer and not all bills are purchased, then guess what? The budget deficits cannot be financed, and the government runs out of money. Meaning, no more checks sent out to any government workers, any government contractors, no nothing. And no emergency spending bill in Congress is going to make any difference, Congress can authorize additional deficits all they want, but if the investors don't buy the bonds, then the government has no cash to operate.

Obama needs to find out from the Chinese investors how much more money they are willing to sink into the US Government. If it's a lot, then Obama isn't going to do anything but allow the Bush Tax Cuts to simply expire. But, if the Chinese investors are nearly tapped out, then your probably going to see some tax increases, and spending cuts.

[2012EOD]

There are exactly 2.25 Million Troops that serve China. That is China's guaranty that we will pay them back.

[stryker54]

should have taken the stimulus package of 877 Bilion and paid back china, than say to hell with them, they don't buy our products and the reason theirs are so cheap, very cheap labor.