Like a landlord dropping by to inspect his property, China’s President Hu Jintao came to the United States to visit his American property manager, President Obama. And as would be expected of any good tenant that so desperately needs future support from the purse holder, Obama extended Hu his “humility” by shielding him from criticism and hosting a lavish, full scale state dinner. In case you are wondering, poached Maine lobster and dry-aged rib eyes with creamed spinach was on the menu.
I want to make this point clear: China is no friend of the United States! At best they are a valuable economic trading partner that we should remain cautious of. At worst they are a superpower country with an increasing economic and military power that both directly and indirectly acts to improve its position in the world while decreasing the United States’ position. Either way once thing is for certain – China is not our friend!!
Sadly, the great United States of America needs China to sustain its appetite for spending. We currently have a national debt exceeding $14 trillion that continues to grow with a $1.3 trillion federal deficit. That is all ok with China, at least for now, because they are more than happy to be America’s banker.
As of November 2010 the People’s Republic of China (a pleasant name for the communist country) held $895 billion of America’s foreign debt. That comes out to 20.6% of all our foreign debt. If you add Japan’s 20.2% debt holdings then over 40% of America’s foreign debt is owned by two Far East countries. Thank God that those two countries do not like each other!
With such leverage over the United States there should be little wonder about why Obama gave Hu such a grandiose visit. China has been very critical of America’s handling of the economy slump we’ve been in, specifically the inflation of our currency. They have boldly called us out, asking for assurance that their investment in us will be protected. President Hu’s visit seems to be an inspection of China’s investment.
The communist country has become gradually bolder over the past few years. It has sealed an agreement with Russia to ditch the dollar for trade between the countries, namely energy trade. It has stalled cooperative efforts to punish the terrorist states Iran and North Korea, which causes more harm and frustration for the United States than for it does for them. They are preparing to join the aircraft carrier owners club. And just days prior to Hu’s visit China stunned the world when news of their newest multi-role stealth fighter jet was leaked. It is worth noting that their new stealth marvel likely was advanced by stolen technology from the U.S. stealth fighter that was downed in Kosovo. All the while its economy grows at a rate over 10%! That is compared to the United State’s growth rate of 2.6%.
None of this suggests that China is all of a sudden top dog in the league of nations. The United States still has tremendous advantages both economically and militarily. But when you consider that China has over a billion people to exploit for centralized power and control the United States cannot keep running around in circles with our monopoly money implementing policies and procedures that hurt our competitive edge and national security, such as: restricting energy exploration and development, burdensome regulations and market interference, a complicated progressive tax system, excessive government spending, unnecessary welfare programs, an unsecured border, and illegal immigration.
Unless the United States can get its head back in the game and once again champion the free market, small government principles that allowed it to advance so quickly from thirteen rugged states to the superpower it is today we are going to have to get used to China’s chest thumping. I suspect that it will become more frequent as we continue to enslave ourselves to their lending hand. Playing anti-American songs at the White House is bad enough!