Recently several American political/financial commentators have published positive views on statements accredited to a Communist Chinese government official named Yi Gang. This individual is the head the State Administration of Foreign Exchange [SAFE], an agency of the Chinese government and anyone who views Yi Gang's comments as positive for the United States is simply naive.
This SAFE agency appears to be substantially involved with investments made by China in other nations' treasury bonds which, unfortunately and dangerously, include the United States to the tune of $894,800,000,000.00. This huge figure represents only the principal amount due by America to Communist China and only though the end of December of 2009. What the above said political/financial commentators were pleased about was an indication from Yi Gang that his nation would continue to be a "responsible investor" in the American Treasury. He further stated that the on-going Chinese investment in the United States should not be "politicized" and hoped China's presence in the US Treasury market would not become a political football.
Yi Gang continued with, "Our foreign exchange reserves are huge so you can imagine that the US Treasury market is an important one to us."
Every American with any world political and or world economic knowledge well knows that the ultimate goal of Communist China is not just to control Asia but to also dictate all that occurs in the rest of the world including the United States. The fact that China is the #1 creditor of the United States is not only an economic fact but is also a political fact. Our nation is in the midst of a terrible economic situation which is defined by a real 17% unemployment rate; a $1.4 trillion dollar deficit in the pending federal budget; and a massive international debt.
The heralded statements by Yi Gang may well mean that Communist China will not dispose of any more of its US Treasury Bonds/Notes [remember that in the past 6 months China lowered its US Treasury holdings by almost $44,000,000,000] and may very well purchase additional debt from America. Our "leaders" in Washington are most happy with this "maybe" continued Chinese investment scenario and are totally naive believing that this debt will not be absolutely manipulated and "politicized" by Communist China.
America's solution has yet to be raised by anyone in Washington and involves a unilateral percent reduction in all foreign government holdings in US Treasury Bonds/Notes.
Radical approach but absolutely justified and doable.
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