National Debt
Posted April 26th, 2008 by SyntheticSolutions
output
Why does Dr. Paul always refer to borrowing from China to pay for war in Iraq when Japan owns more US TREASURY SECURITIES? Am I missing something here?
Bookmark/Search this post with:
China is a communist nation
China is a communist nation and the economic and military rival of the US. Therein lies the irony of the loans.
Ron Paul Explorer: The All Paul Search Engine
Borrowing from the prosperity of our children
Japan does hold more treasuries than China:
http://www.treas.gov/tic/...
However, as a political statement, it's much more impactful to under-educated (or miseducated) Americans when they hear that this "rich" nation must borrow from China to pay for massive government deficit spending. Everyone is used to Japan being a prosperous and wealthy nation, so it is not surprising that we would borrow from them. I think this is why Dr. Paul chooses to focus on China over Japan or other nations.
Ultimately, however, the biggest "borrowing" is in the form of inflation, the creation of money and credit that will be repaid in perpetuity by our children as the purchasing power of our dollars continues to decline and wealth and savings are effectively erased. It's like raising a tax (to pay for the war, or anything else), without any consent by the citizenry, or any real transparency. Only a tiny fraction of people really understand this, which is why we are where we are.