Yesterday it seemed that Hillary Clinton’s principal goal in China was to detach human rights from . . . well, from everything. Today’s Washington Post reveals the real purpose of her trip: sales.
Barack Obama has, in a month, made George W. Bush’s deficits look like surpluses. And he or his cabinet members promise about another $1.5 trillion in direct debt before the fiscal year ends in September.
To finance this socialist expansion of government, Obama must sell bonds and lots of them. Much as war bonds fueled our efforts in WWII, these “Barry Bonds” are hoped to fuel the nanny state.
Last week, Ed Morrissey explained why he and others believe China has no choice but to keep buying. I’m not so sure. The debt China owns right now can garner a premium on the market. Combine that with the strengthening dollar, and you quickly see why China might want to cash out some of its US debt to build infrastructure in its own country.
China might also use domestic investment, financed by the sales of US Treasuries, to expand consumerism at home. The promise of a gigantic consumer market in the world’s most populace country has failed to materialize. It seems to be the logical next step in China’s financial maturation.
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