Tags: Ed Koch | Chinese | economy | Obama

Chinese Ascendancy Could Whack U.S. Economy

Tuesday, 09 Feb 2010 09:03 AM

The Chinese economy is surging. In every area of endeavor, the country’s influence around the world is getting stronger. Government decision-makers and media around the world speculate that the Chinese will take the place of the United States as the world’s No. 1 superpower.

Today, the Chinese are our banker. They own 23.35 percent of our national debt. What if, because of pique, or for strategic or tactical reasons, they decided not to continue to annually buy U.S. Treasury bills, and we were forced to look elsewhere? What would be the effect on our economy?

I’m not an economist, but it appears that U.S. Treasury bond interest rates would skyrocket, and rates on all other U.S. business bond offerings would follow. We then would face crippling inflation.

President Obama should tell the American people what he intends to do to combat the threat to our economy, and, indeed, to our national sovereignty and security posed because the Chinese own such a large percentage of our national debt.

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