Obama - Our Chinese Credit Card: Bank of China - Buy United States Bonds (Debt), Please!

We're being sold to China, lock, stock and barrel. How stupid are we? Our stupid government runs up massive deficits, then stupid Americans buy massive amounts of Chinese products, and then smart China takes that money and buys up our debt. Can you say; retarded? Better start learning to speak Chinese. Just recently they had Hillary Clinton running over to China begging them to buy our debt. Whats next, are we going to start selling off little pieces of America, like a farmer slowly sells off chucks of his farm to pay the tax man? Why dont they just balance our budget? What is it going to take for them to get the message that we dont have the money; we are out; we are broke? Do we need a revolution for then to finally understand what is right in front of their face, I mean are they that dense? jbranstetter04 Hillary Clinton pleads with China to buy US Treasuries as Japan looks on "It's a safe investment. The United States has a well-deserved financial reputation," she told Chinese television stations at the end of her diplomatic tour of Asia. "We are truly going to rise and fall together. Our economies are so intertwined, the Chinese know that to start exporting again to their biggest market the United States has to take some very drastic measures with this stimulus package, which means we have to incur more debt," she said. Chinese media reports say Mrs Clinton has offered emphatic assurances to premier Wen Jiabao and President Ju Jintao that the Obama administration intends to restore the health of US public accounts and safeguard the interests of bondholders once the economy has begun to recover. Asian investors have expressed concern over the flood of debt in the United States, fearing that it could tempt Washington to engineer a stealth default by allowing inflation to creep up. The Treasury says it needs to raise almost $500bn (£350bn) in debt in the first quarter alone. Estimates for 2009 reach as high as $2 trillion, a huge sum in a world starved of capital at a time almost all the major governments are launching fiscal rescue packages. Yields on 10-year Treasuries have risen from just above 2pc before Christmas to 2.77pc last week. This has pushed up the cost of mortgages, undermining efforts by the Federal Reserve to stabilize the housing market. The Treasury's International Capital (TICS) data shows that foreigners sold a net $26bn on long-term Treasuries in November. This rebounded somewhat to plus $15bn in December, but China, Russia, and other big reserve powers have continued dumping their holdings of US agency mortgage bonds. Mrs Clinton's plea for Beijing to keep buying US bonds comes in sharp contrast to comments during the presidential primaries when she said Chinese ownership of US government debt had become a threat to national security. Fears that she would break with the Sinophile policies of the Bush administration and opt for a much tougher line against Beijing have so far proved unfounded. Chinese officials said last week that Beijing had no plans to halt purchase of Treasuries, although just 25pc of its recent reserve accumulation has been going into dollar assets. China already owns $696bn of US government debt but it still needs to find a safe place to invest a monthly current account surplus reaching $40bn. There are very few AAA-rated assets to choose from. If the Chinese falter, it looks increasingly likely that Japan will step into the breach. Albert Edwards, global strategist at Societe Generale, said Tokyo may be poised to intervene with massive purchases of US bonds to help drive down the yen. The currency has risen 30pc in trade-weighted terms over the last 18 months. http://www.telegraph.co.uk/finance/financetopics/financialcrisis/4782755/Hillary-Clinton-pleads-with-China-to-buy-US-Treasuries-as-Japan-looks-on.html