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Politics : Just the Facts, Ma'am: A Compendium of Liberal Fiction -- Ignore unavailable to you. Want to Upgrade?

To: Sully- who wrote (71109)	4/15/2009 3:49:49 AM
From: Sully-	Read Replies (1) \| Respond to of 90947

No matter how you cut it, we the middle class taxpayer will pay for this dearly. *************** China isn't as interested in lending us money Betsy's Page Doomsayers have been predicting for a while that China was going to lose interest in funding the United States debt and now it seems to be happening. <<< Reversing its role as the world’s fastest-growing buyer of United States Treasuries and other foreign bonds, the Chinese government actually sold bonds heavily in January and February before resuming purchases in March, according to data released during the weekend by China’s central bank. China’s foreign reserves grew in the first quarter of this year at the slowest pace in nearly eight years, edging up $7.7 billion, compared with a record increase of $153.9 billion in the same quarter last year. China has lent vast sums to the United States — roughly two-thirds of the central bank’s $1.95 trillion in foreign reserves are believed to be in American securities. But the Chinese government now finances a dwindling percentage of new American mortgages and government borrowing. >>> As Thomas Sowell explains, <<< The Chinese are no fools. They know that all this unbridled spending-- even when it is called "investment"-- means that inflation is coming. That in turn means that the dollars with which U.S. government bonds will be paid off will be worth a lot less than the dollars with which the bonds were bought. Governments around the world have played this game for centuries, robbing those who trusted them enough to buy their bonds. Like Bernard Madoff, they call it "investment." Inflation also means that all the talk about how higher taxes will be confined to "the rich" is nonsense. Inflation is a hidden tax that takes away the value of money held by everyone at every income level. >>> betsyspage.blogspot.com