China has so much cash in reserve that they are funding their own economic stimulus — and with their own money; not borrowed cash.
China is also funding the American economic stimulus by buying American Treasury bills and other debt.
Cinese leaders are gloating to some extent about the stupidity of American leaders who do not have the cash reserves so carefully put aside by China. Many Chinese leaders also scoff at the tom foolery of most Americans who have such debt ridden lives, with mortgages, credit card debt, a loan for the car and a college loan still outstanding.
But what the Chinese leaders don’t talk about is that few Chinese have cars, nice homes and college degrees….
So Chinese arrogance about American debt is sometimes confused by envy for many things American….
And China has expressed some concern about the spend-crazy Americans.
Premier Wen Jiabao “We have loaned a huge amount of money to the United States,” Wen said at a news conference in Beijing. “Of course, we are concerned about the safety of our assets. To be honest, I’m a little bit worried. I would like for you [a Western reporter] to call on the United States to honor its word and stay a credible nation and ensure the safety of Chinese assets.”
This came at about the same time that United Nations Secretary General Ban Ki-moon called the U.S. a “deadbeat” nation.
Expect China to exert more influence over U.S. economic and foreign policy, just as Barack Obama is claiming the right to dictate policy to banks who took his bailout money.
China holds about $1 trillion in U.S. debt and will likely “buy” about $1 trillion more — especially if Obama and Nancy Pelosi demand another stimulus package.
Chinese arrogance and wealth is unmistakable, pervasive and in some ways very troubling for the West.
China is using its vast wealth and the current global recession as an opportunity to buy up natural resources at bargain prices. China is building a world-class military complete with a global navy and an aircraft carrier. And China is not afraid to confront the likes of the U.S. just as it did on the high seas last weekend….
We can expect China to continue to grow and dominate Asia, the Pacific and wherever they choose to go.
This US Navy file photo shows the military Sealift Command ocean surveillance ship USNS Impeccable (T-AGOS-23). Five Chinese vessels maneuvered dangerously close to a US Navy ship in the South China Sea on Sunday, March 8, 2009, approaching within 25 feet of the unarmed surveillance ship, the Pentagon said.(AFP/NVNS)