Wednesday, November 18, 2009

Obama Went To China...

And all we got was a stern lecture by Communist President Hu. Nice.
The very simple fact is that China owns us. The good news is that China owns so much of our debt that if we fail, they fail. It is kind of like the relationship between banks and large real estate developers. No matter what happens during the relationship, as long as the bank owns the paper on the buildings, the developer is given more and more money so that he does not fail. Case in point, Donald Trump. He was near bankrupt in the mid 90s, but still the banks gave him money. Because if he went down he drug the bank with him.

We are Donald Trump, China is the bank. The bank is pissed at us, but can't let us fall on our face. So we get a stern lecture. That's cool.

We have no leverage in the relationship. We have no leg to stand on. We have to do exactly what our banker wants us to do. That means we keep our mouths shut on freedom and liberty. No problem for this administration... they don't believe in those things either.

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