He [Treasury Secretary Timothy Geithner] said he had "absolutely no concern" that China, the largest foreign holder of U.S. government debt, would stop buying that debt.
"They've been very strong and I'm sure they'll be strong investors in the U.S. going forward as will investors around the world," he said.
Our political leaders at the highest level are faulting Standard and Poor's downgrading the U.S. credit rating. Mr. Geithner is lauding the fact that the world will continue to be hungry for our debt.
Two thoughts come to mind.
1. If you don't like the message, shoot the messenger. Mr. Geithner wants to squabble with S&P over a supposed 2 trillion dollar variance in regards to our debt. The better question is, what about the alleged 50 trillion in unfunded liabilities?
2. The other thought is, why isn't America buying China's debt? It troubles me that Geithner, and others, have made the defense of our ability to sell debt the issue. We should be dealing with the fundamental question... Why are we selling our debt?
When you raise the limit on your Discover card so that you can pay the interest on your Visa card you have a fundamental problem.
When you borrow 4.1 billion dollars per day to meet your expenses, raising your credit limit isn't the issue. The sad truth is that our political leaders are so divided, and I suspect overwhelmed, that they can't even begin to deal with the real issue!
Our leaders need to hear S&P saying that they need to see a 4 trillion dollar reduction in our spending!!!!! The Republicans want to blame President Obama, and the White House wants to blame the Tea Party. S&P wants to see the members of Congress, and the President, cut our deficit by $4,000,000,000,000.
Donald Trump was right on point when he correctly asserted that America is on her way to a $22,000,000,000,000 dollar debt. We currently spend 41 cents of every dollar on our debt service. We are looking forward to a day when 100% of our GDP [Gross Domestic Product] will be needed to service our debt.
Our hospitals will not be funded, our schools will be broke, and our military will be living on a shoestring budget. Compare this to China who has a rising GDP, and a burgeoning military machine.
The simple truth is this. Households, churches, cities, states, and countries can not long survive with a negative cash flow and growing debt load.
Pray for our local, state, and national leaders, that God will give them the wisdom and courage to dig America out of this growing whole! As bad as cutting will be now, it will be infinity worse, or perhaps fatal, later!
Paul
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