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To: Cringing Negativism Network

“Although we have enabled the Chinese, they have created our national debt because they do not buy from us.”

****

Whether the U.S. has a national debt is not dependent upon whether the Chinese buy goods from the U.S. private sector.

The U.S. national debt exists because the federal government spends more money than it takes in. The solution is to cut government spending and repay the debt. The government is trying to cheat on this by continuing to spend but devaluing the currency so the debt can be repaid in cheaper dollars.

The fact that the Chinese do not buy much from the U.S. creates a trade deficit but that is not the same thing as the national debt. There is no correlation. If the Chinese bought as much from U.S. businesses as we do from China, there would still be a huge growing national debt because of government spending.


37 posted on 09/28/2014 4:34:04 PM PDT by peyton randolph (Good intentions do not excuse poor results.)
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To: peyton randolph

I disagree with you, to the extent that you are saying the Chinese trade deficit does not contribute to the national debt.

It does.

We are giving away 30 billion dollars every single month, to China.

That was my entire point, in the original post. We are giving away America’s wealth.

Stop it. Bring back American jobs.


38 posted on 09/28/2014 4:37:29 PM PDT by Cringing Negativism Network (http://www.census.gov/foreign-trade/balance/c5700.html#2013)
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