“That means AMERICA is building up China.”
That deficit is paper and electronic money not gold. In the event of a war the first thing that would be cancelled is that debt.
What is frightening about that thought is it gives lie-berals an economic reason to go to war with China
Actually I am much more concerned with the fact we are teaching China how to make everything.
All the things we send to China to make for us, to buy, become China’s.
Those factories, belong to China.
So in addition to us sending so much money to China to buy the stuff, now China has the capability to make all of the stuff we buy.
In effect, we are handing China our entire production infrastructure.
They are not joint ventures. All of the “joint ventures” with China are to the best of my knowledge, 51% owned by China. That means they own all of it.
China owns, all of (our) factories now.
At least, the massive amount, that we have sent there.
And it doesn’t seem to be slowing down. Our trade deficit with China just last year, was ANOTHER ALL TIME RECORD.
Yet everyone in our government, is 100% sold out.
Everyone.
The real long-term effect of China’s ascendancy is that vast accumulation of gold by China, which now has stores that exceed those of George Soros. Not stored in a vault in stacks in Ft. Knox, but in various bank vaults within the Chinese territory, where they can control both the gold supply available for trade (as the go-to currency when all other currencies collapse), and the price of gold at any given moment. Price of gold too low? Withhold any draw-down of the hoard. Price of gold too high? A small increase in the amount of gold in daily physical trade should send prices plunging. Need a little “liquid” cash? Sell “paper gold”, a promise (rarely carried out) to deliver the physical gold at some future date, but these contracts are bought back up long before the end of the term, on a hedge against still further sales of “paper gold”. At any given moment, there may be dozens, hundreds, or thousands, even, of claims on the identical pile of physical gold.
“Full faith and credit”, not of the US government, but of the People’s Republic of China. Don’t you feel all better now that the nasty old capitalists of the Western world are getting just what Bernie Sanders think they should?