Crazy Drunken Sailors spending money that is not theirs news: China has several hundred billion dollars of foreign reserves, which they have used to buy US sovereign debt such as T-bills. Let me get this straight: We are financing their project????
I assume this is the same crowd who like to lecture the US on the federal budget deficit??
I assume this is the same crowd who like to lecture the US on the federal budget deficit??
It does appear to be just that mad -- and to give this to a bellicose totalitarian state that is flush with funds, of which China has spent far more on getting first dibs on a lot of oil out there. Even if we are foolish enough to give them this advanced technology, it is still the height of folly to lend or guarantee money on this enterprise.
As to the crowd, no, I think this crowd is (largely) delighted with both the trade deficit and the budget deficit, a la Federal Reserve Governor Bernanke.