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Peking Over Our Shoulder (China owns us and she's getting terribly nosy)
The New Republic ^ | 9/15/2009 | Noam Scheiber

Posted on 09/15/2009 4:26:25 AM PDT by SeekAndFind

The annals of Sino-American relations have seen more than a few celebrity-diplomats: Henry Kissinger, a young Richard Holbrooke, and, of course, the current secretary of state. But, unless the record has been lost to history, none has ascended to this rarefied plane of geopolitics while running the Office of Management and Budget.

And yet, there was budget director Peter Orszag rushing to a lunch with Chinese bureaucrats on a Monday in late July. To his surprise, when Orszag arrived at the site of the annual U.S.-China Strategic and Economic Dialogue (S&ED), the Chinese didn't dwell on the Wall Street meltdown or the global recession. The bureaucrats at his table mostly wanted to know about health care reform, which Orszag has helped shepherd. "They were intrigued by the most recent legislative developments," Orszag says. "It was like, 'You're fresh from the field, what can you tell us?

As it happens, health care is much on the minds of the Chinese these days. Over the last few years, as China has become the world's largest purchaser of Treasury bonds, the government has grown increasingly sophisticated in its understanding of U.S. budget deficits. The issue has become all the more pressing in recent months, as the financial crisis and recession pushed the deficit to record levels. With nearly half of their $2 trillion in foreign currency reserves invested in U.S. bonds alone, the Chinese are understandably concerned about our creditworthiness. And this concern has brought them to the issue of health care. "At some point, if you refuse to contain health care costs, you'll go bankrupt," says Andy Xie, a prominent Shanghai-based economist, formerly of Morgan Stanley. "It's widely known among [Chinese] policymakers." Xie himself wrote a much-read piece on the subject in 2007 for Caijing magazine--kind of the Chinese version of Fortune.

(Excerpt) Read more at tnr.com ...


TOPICS: Business/Economy; Culture/Society; Editorial; News/Current Events
KEYWORDS: china; debt; usa

1 posted on 09/15/2009 4:26:26 AM PDT by SeekAndFind
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To: SeekAndFind

This plant piece by the Feds is designed to give cover to the political imperialism the Chinese are practicing here in the USA.

The reason the Federal legislative and executive branches are 180 degrees out of sync with the American public on Cap n’Tax, “Healthcare” and Immigration is because of the pressure China is exerting in DC.


2 posted on 09/15/2009 4:34:51 AM PDT by mo
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To: mo
The reason the Federal legislative and executive branches are 180 degrees out of sync with the American public on Cap n’Tax, “Healthcare” and Immigration is because of the pressure China is exerting in DC.

I'm trying to understand how this can be so. If the Chinese are pressuring us to for instance, implement Cap and Trade, knowing that it will further weaken our economy and cause our national debt to increase even further and cause further inflation due to excess government spending, thus making their ownership of our debt increasingly worthless, they must have an economic suicide wish.
3 posted on 09/15/2009 4:39:50 AM PDT by SeekAndFind
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To: SeekAndFind

Thats the problem with being owned, you get an owner. Congratulations for New Republic taking one more step toward the light.... knowing they will crawl right back to the corner.


4 posted on 09/15/2009 4:40:07 AM PDT by GeronL (http://libertyfic.proboards.com ............. http://tyrannysentinel.blogspot.com)
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To: SeekAndFind

The next posters carried by TEA party members should show the Chinese commies pulling the strings of BO, Geithner, and Bernanke. Thanks to the insane spending and borrowing of our profligate politicians, the Chinese are the puppetmasters who now tell our “leaders” how and when to dance.


5 posted on 09/15/2009 4:42:52 AM PDT by kittymyrib
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To: SeekAndFind
That "China owns us" defeatist attitude is awfully annoying, and completely untrue. China owns a lot of Treasury Bills. That's all. Just because I have a lot of municipal bonds, doesn't mean I own the county. On the contrary, we "own" a lot of China. A large part of their economy depends on the American owned business that operate there, and produce those cheap Chinese goods everyone whines about.
Chinese imports from American based companies, such as GM, Auto parts suppliers, GE, etc. are worth billions a year, and keep a lot of Americans employed.

So what's good for America, is good for China, and what's bad for America, is bad for China.
They depend a lot more on us than we do on them.

6 posted on 09/15/2009 4:42:56 AM PDT by Nathan Zachary
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To: SeekAndFind

The Chinese are saying that if we don’t control health care costs, we will go bankrupt? Ludicrous. This could only happen if the government is financing the health care. Otherwise, it’s self-controlling.

This story is hogwash. But, hey, it’s the New Republic, so we knew that already.


7 posted on 09/15/2009 4:44:17 AM PDT by Rocky (OBAMA: Succeeding where bin Laden failed.)
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To: Rocky

Exactly.


8 posted on 09/15/2009 4:49:20 AM PDT by Nathan Zachary
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To: SeekAndFind

Think of what this says about 0bama. In economic matters the Chinese communists have more understanding and concern about economic irresponsibility than the POTUS. This says 0bama must be either stupid or delibrately trying to harm the USA. It is sobering and frightening at the same time.


9 posted on 09/15/2009 4:50:48 AM PDT by rgboomers (This space purposely left blank)
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To: Nathan Zachary
That's all. Just because I have a lot of municipal bonds, doesn't mean I own the county.

If you own close to a third of all municipal bonds issued and your percentage of ownership is increasing, what does that make you ?
10 posted on 09/15/2009 4:53:52 AM PDT by SeekAndFind
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To: Rocky
The Chinese are saying that if we don’t control health care costs, we will go bankrupt? Ludicrous. This could only happen if the government is financing the health care

That's why they're concerned. It's because this is slowly coming true with Obamacare. Ironic isn't it ? The Communist Party of China concerned about government take over of health care.
11 posted on 09/15/2009 4:55:38 AM PDT by SeekAndFind
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To: Rocky
The Chinese & the New Republic are assuming the gov’t will take over health care.
12 posted on 09/15/2009 4:59:58 AM PDT by Mister Da (The mark of a wise man is not what he knows, but what he knows he doesn't know!)
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To: Nathan Zachary

.....So what’s good for America, is good for China, and what’s bad for America, is bad for China. .......

That might be a trifle overstated but does have substantial truth. The fact is when a debtor gets in a little trouble, the creditor has a problem and must decide to cut and run or develop a work out. I’m not real sure we are yet to that point but it doesn’r hurt to keep a very close eye on things.

There is another never mentioned course. That course is massive and I mean never before seen in world history massive spending by China to modernize everywhere. The amount of construction possible is unfathomable. The boost to every minute crack in their economy would be awsome.

There is a desire as people complain and even demonstrate against the pollution and other disagreeable results of the massive industrial change. The Chinese travel or at least some do and they know about the rest of the world. They have relatives literally everywhere.

They have the money. They can trade in their American bonds for American stuff and maybe even brainpower. There are many many very close relationships between Americans and Chinese in tons of very diverse businesses. It is not at all like some think where both countries live behind high walls.

Rational thought tells me they will direct their thought and energy internally rather than create unproductive mischief externally


13 posted on 09/15/2009 5:04:47 AM PDT by bert (K.E. N.P. +12 . Quotes of the century: 2001 "Lets Roll"..... 2009 "You Lie")
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To: Mister Da
The Chinese & the New Republic are assuming the gov’t will take over health care.

Let's amend that a bit -- the Chinese are CONCERNED that the government MIGHT take over health care.

I can't speak for the New Republic as I believe they're mostly FOR it.
14 posted on 09/15/2009 5:07:13 AM PDT by SeekAndFind
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To: SeekAndFind

What day does the Chinese flag go up on the WH lawn. September 20th?


15 posted on 09/15/2009 5:08:55 AM PDT by Sig Sauer P220 ("Peace" is that brief, glorious moment in history when everybody stands around reloading - Anonymous)
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To: SeekAndFind

Want to ruin someone? Give them easy credit.


16 posted on 09/15/2009 5:32:56 AM PDT by SampleMan (Socialism enslaves you & kills your soul.)
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To: SeekAndFind

Luigi does’nt care where you get the cash from....but if you owe him....and your drivin’ a Caddy...you’ve got some ‘splainin’ to do...


17 posted on 09/15/2009 6:00:00 AM PDT by mo
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To: SeekAndFind
I agree.

But I believe the Chinese assume the gov’t WILL take over HC because they are used to the gov’t getting its way. They know that if the ruling class wants it, it WILL be so. Big gov’t & bureaucracy are ascendant around the world.

The Chinese, already having socialized medicine, likely are well aware of the burden of gov’t financed HC. All those PANELS & committees can get pretty expensive, especially when you add in the cost of graft & corruption. Its expensive keeping even the “worthy” alive & working.

They are simply concerned about their investments in dollars. I am, too!

Ultimately, I see Obama & Co. printing more & more dollars as a way to fund further socialist insanity & to pay the interest on the growing debt, resulting in big inflation. My money & Chinese dollars will be worth less. Both of us would rather that didn't happen.

I hate to side with a country not on our BFF list, but I think the Chinese are right to be concerned.

18 posted on 09/15/2009 6:36:29 AM PDT by Mister Da (The mark of a wise man is not what he knows, but what he knows he doesn't know!)
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To: Nathan Zachary
That "China owns us" defeatist attitude is awfully annoying, and completely untrue. China owns a lot of Treasury Bills. That's all. Just because I have a lot of municipal bonds, doesn't mean I own the county.

No, maybe you forgot that the US canceled sales of fighters to Taiwan to appease China. Maybe you see China as a Santa Claus who will keep lending to us no matter how much we spend. I think that is a foolish hope in the long run.

19 posted on 09/15/2009 6:51:50 AM PDT by ding_dong_daddy_from_dumas (Obama's multi- trillion dollar agenda would be a "man caused disaster")
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