It somehow didn’t come up.
Last week, when President Barack Obama met with Chinese premier Wen Jiabao, there was reportedly no discussion of the fact that our country owes China over $800 billion.
Just suppose you owed someone $800 bucks . . . or $800,000. Do you think it could affect the relationship?
What about nearly a trillion dollars?
The Obama Administration just announced that American-Chinese relations are “at an all-time high.” But a story in the Washington Post compared our relationship with China to the nuclear stalemate of the Cold War, known as “mutually assured destruction,” or MAD. We’re dependent on them for future loans; they’re dependent on us to pay back old loans and new.
Kenneth Lieberthal of the Brookings Institution explained that “the Chinese can pull the rug out from under our economy only if they want to pull the rug out from under themselves.”
Reassuring? Not very.
Why have we allowed a foreign power to gain such leverage over us?
Because our politicians cannot — will not — limit their yearly spending to the trillion-plus dollars in revenue from American taxpayers.
When it comes to debt, China’s tyrants have taken better care of their country than our politicians have of ours. But we needn’t cede them control. Far better simply to stop borrowing billions from Beijing.
How? Slash spending. If our politicians can’t do it for us, maybe they can do it for their Chinese allies.
This is Common Sense. I’m Paul Jacob.