Discussion: US National Debt and is China really the big scary threat? No!

ATS,

Please do not aid in the fear mongering of this subject. China doesn't, nor has it ever, held the majority of United States debt. This is a common misnomer perpetuated by Western media to show China in a bad light. Just another silly remnant of Cold War "Communism is icky" mentality that has yet to subside. And no I am not suggesting favor towards a Command economy, I happen to like my American Free Enterprise, quite a bit.

The majority of US debt is actually owed to ourselves. Over 40% of US debt is owed to US citizens who loan money to our government. China only owns 7.5% of US debt, which in the grand scheme of things is not as much as our media would like us to think.

I know empty words mean nothing on ATS, so here is some [url=http://static.seekingalpha.com/uploads/2011/1/18/saupload_to_whom_does_the_us_government_owe_money.jpg]>>>informationHERE

reply to post by SneakySleuth911


No, it isn't "fear mongering", it's fact. You ever notice why EVERYTHING has "Made in China" on it?

Because paying a couple of Chinese workers a few measly bucks a week is a lot more efficient than paying American workers minimum wage.

Your pride for your country is commendable. But futile. And yes, there is a giant conspiracy. Example, GC spent 3.5 bazillion dolyares to build a fiber optic network to India. Only to sell said network to the Indians for a fire sale discount of 96% off. Care to guess the purpose of said network?

Originally posted by Lionhearte
reply to post by SneakySleuth911

 

No, it isn't "fear mongering", it's fact. You ever notice why EVERYTHING has "Made in China" on it?

Because paying a couple of Chinese workers a few measly bucks a week is a lot more efficient than paying American workers minimum wage.

edit on 4-6-2011 by Lionhearte because: (no reason given)

That is a result of out-sourcing low skilled labor to nations which have less regulations on such measures. I am not justifying it, and sanctions have been placed on US businesses that do exploit workers like Nike was with the sweat shops.

But America has purposely outsourced those jobs as we have moved in economic structure into more of a service oriented economy. As your tone indicates in your post, you seem as if you would not wish to make a bunch of toys for peanuts to the dollar here in the United States, nor do I blame you. I would not either.

Calling something fact and dribbling about outsourced labor doesn't rebut my statement that calling China this evil scary monster is nothing more than fear mongering.

Originally posted by eldard
Your pride for your country is commendable. But futile. And yes, there is a giant conspiracy. Example, GC spent 3.5 bazillion dolyares to build a fiber optic network to India. Only to sell said network to the Indians for a fire sale discount of 96% off. Care to guess the purpose of said network?

Would you be able/willing to link any sources to your story so I could answer directly what it is you are speaking of? I would be more than happy to answer this. Thanks in advance!

I don't want to ruin your positive spirit, but you don't seem to realize that it is the Federal Reserve that owns most of US debts, not the people:

At the Federal Reserve Bank of New York, Brian Sack and his NYU interns have bought so many Treasury securities that the Fed now owns more U.S. debt than anyone else in the world, including China. China currently holds $896B. Japan owns $877B. And the Fed comes in at $1.108 TRILLION, and no sign of letting up.

source

Inflation, anyone? I doubt I have to tell you that the US is already bankrupt. Raising the debt ceiling is not an option for countries like Greece. Only the US can do so due to the dollar hegemony, yet the US cannot spend limitlessly. At a certain point the dollar will weaken so much that investors lose confidence in the US ever being able to pay off their dues. The fact that China and other nations are already reducing US debt holdings exemplify this decrease in trust. Foreign debt holders are crucial as you are out of options in terms of borrowing money. You have so much debts that you need to turn every penny twice, should investors like China bail on you, the dollar will enter a free fall.

And no, China doesn't want that, but if the US continues to spend recklessly, it will soon become the only option, whether you like it or not.