Tuesday, November 17, 2009

Chinese Smarter Capitalist's Than Obama, Pelosi and Reid

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The Chinese want some reassurance that Obama isn't going to destroy their investment:

Guess what? It turns out the Chinese are kind of curious about how President Barack Obama’s healthcare reform plans would impact America’s huge fiscal deficit. Government officials are using his Asian trip as an opportunity to ask the White House questions. Detailed questions.

Boilerplate assurances that America won’t default on its debt or inflate the shortfall away are apparently not cutting it. Nor should they, when one owns nearly $2 trillion in assets denominated in the currency of a country about to double its national debt over the next decade.

Nothing happening in Washington today should give Beijing any comfort or confidence about what may happen tomorrow. Healthcare reform was originally promoted as a way to “bend the curve” on escalating entitlement costs, the major part of which is financing Medicare and Medicaid. That is looking more and more like an overpromised deliverable.

For instance, a new study from the U.S. government’s Centers for Medicare and Medicaid Services finds that the healthcare reform bill recently passed in the House of Representatives would increase healthcare spending to 21.3 percent of GDP by 2019 compared with 20.8 percent under current law. That’s bending the curve the wrong way. The study also questions the “long-term viability” of the $500 billion in Medicare cuts meant to help pay for expanded insurance coverage.
When even the ChiComs are questioning our slide toward socialism, perhaps we as a nation should stop and take notice. Several things can happen here and they're all bad; the Chinese can call in the IOU's and cause us to default. The Chinese can say they will no longer buy our paper and we run out of funds unless we grovel to the Saudi's or Russians. Thirdly, the ChiComs realize they have us over a barrel and start their ambitious plans to become the dominate player in the region and start to threaten Japan (whom they will never forgive for the rape of Nanking), South Korea (who would lean toward the Chinese and also owe Japan one from WWII) and strategic ports like Singapore (the busiest port in the world).

Tax revenues are in the sewer and jobs are becoming more scarce by the month. The Chinese have to be feeling a bit edgy about the ability of Obama to lead us out of this. Hell, maybe we can give them GM and Chrysler to stave them off for awhile, they buy alot of those inferior brands anyway and they can send the UAW over with them.

This is where Obama has brought us and wants nothing more than to go ever farther and implement every social policy the Democrats have dared dream about since LBJ bowed out.

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