What kind of policy is this one? We beg China to buy our debt while corporations offshore outsource manufacturing and our jobs to China?
From voice of America:
The top U.S. diplomat says Washington must incur more debt to China to boost the ailing U.S. economy and stimulate demand for Chinese products. She says it would not be in China's interest if the U.S. is unable to get its economy out of a recession.
China is the largest holder of U.S. Treasury bonds. Clinton says China's continued investment in U.S. Treasuries is a recognition of the interconnection of the U.S. and Chinese economies.
Chinese Foreign Minister Yang Jiechi told Clinton Saturday that both countries should boost economic policy coordination and reject protectionism in trade.
Get that? Ok United States, we will continue to buy your debt but you must continue to ship your jobs, technologies, manufacturing and now advanced research and development to us.
What a Faustian bargain this is!
According to Bloomberg:
China, the largest holder of U.S. government debt, boosted purchases by 46 percent last year to a record $696.2 billion as the global recession spurred demand for the securities. The Chinese government said last week it plans to keep buying Treasuries, adding that future purchases will depend on the preservation of their value and the safety of the investment.
The treasury has the numbers of U.S. treasury holders online. You can see other nations have reduced the amount of treasuries they hold.
Just a few days ago, China warned the United States about the ballooning deficit and the possibility of inflation and a dollar devaluation. China also said it was a bad investment to continue to buy U.S. debt.
Gee wiz, notice nothing about buying U.S. goods is ever mentioned!
What else beyond global economic disaster can possibly come from this game of offshore outsourcing U.S. jobs, large swaths of the U.S. economy and expecting China to also buy U.S. debt?
These idiots continue to believe the United States is the weathiest consumer market in the world but the truth is the buying spree is fueled by debt.