#359 jayzee

I did not say the Chinese were selling their treasuries. What I said was that they had essentially stopped buying new treasuries. But if it makes you feel better you can twist it anyway you want it.

The facts remain, the Chinese purchase of treasuries in the first quarter of last year covered 75% of the our deficit spending for the same period. Further, since we were in surplus for a while 2008 those purchases would have covered our entire deficit for 2008 before TARP.

This year, the Chinese have spent $7 or $8 billion dollars to purchase US debt in the first quarter. That purchase would not cover 3% of the deficit for that quarter alone.

Sure the have not started to sell off their Treasuries. But by exiting the market they have forced us to print money to buy our own debt.

You can dismiss Beck and Paul and all the other wackos. I wish there was a more rational person sounding the alarm. But I guess no rational person who understands what is happening wants to be called a conspiracy nut.

But at least in this case the wackos are right. When the economy recovers either Obama’s spending programs are stopped or we keep printing money because there is no one left to fund our deficits.

Forget the miltias and Code Pink and Paul and Beck and Pelosi and Frank and Obama and Ayers and Wright. Printing money to find government spending is what destroys economic systems and brings down governments.