Sen. Clinton recently wrote a letter to the treasury secretary outlining her “concern” about foreign governments holding so much of our debt. She’s afraid that they could somehow coerce us into doing something that we don’t want to do… In any borrowing situation without collateral, the borrower has a huge advantage over the lender. The borrower could simply refuse to pay back the loan. Somehow, Sen/ Clinton thinks that the Chinese in particular have us over a barrel. Let’s ignore that for the time being. Her solution to this “problem” is to impose trade restrictions with China. Here’s a better idea, stop spending so damn much money and you won’t have to worry about debt at all… If you spend more than you take in, someone has to finance the debt, and why not the CHinese if they are willing. Stop deficit spending and there re no more worries about who holds the debt, pretty simple and much better for the economy….
Isaac