Timothy Geithner recently endured two days of meetings with the people paying his salary - the Chinese.
During the meetings, and at the press conference afterwards, Geithner assured the Chinese government that the U.S. would be decreasing it's national debt.
Unfortunately, Geithner simply lied. He doesn't have the authority to reduce the national debt. Geithner’s nominal boss, Barack Obama, has presided over an increase in our national debt from $1.3T to $1.8T less than once year into his term.
The Chinese are worried, because are huge portion of that $1.8B was borrowed from them. The United States is now, effectively, working for the Chinese. Our grandchildren will be working as indentured servants to pay off all the debt we are accruing.
The Chinese need to the U.S. as a market for their manufactured goods. The steady flow of revenue from the United States is keeping the lid on a boiling pot of political turmoil inside the socialist nation. A failure of the U.S. economy due to the massive federal debt could lead to massive waves of violent unrest in China - it could even topple the socialist government.
The Chinese are right to be nervous about our economic mismanagement. Remember the golden rule: The person with the gold makes the rules. The Chinese have the gold and they make the rules.
The U.S. is a debtor nation and we’re sinking deeper into debt every day. We’ve lost the right to make our own rules, and we deserve the chastisement our boy Geithner received at the hands of his (and our) new bosses.
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Greg Martinez is the author of Timothy Geithner Talks to His Real Bosses and the maintainer of Rethinking the GDP Report.
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