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Now that Senator Reid apparently has the 60 votes he needs for cloture, and it looks certain that the “health care reform” (sic) Bill will pass the Senate, there is an interesting development that is passing almost unnoticed. And it may make the passage of the Bill completely moot in the long-run.
The Chinese government yesterday made what may be the most definitive and important votes on ObamaCare…and also on a second “stimulus” package, U.S. economic recovery, job creation, and the future of America itself. The implications of what the Chinese officially said and did yesterday are going to be felt throughout 2010 and many years beyond.
The first vote on the budget-busting ObamaCare Bill by China came in Copenhagen:
At an emergency meeting convened at the Bella Center this morning, Barack Obama and Gordon Brown assembled 26 heads of state in an attempt to revive a deal. But China’s Premier Wen Jiabao did not attend and was replaced by vice foreign minister He Yafei.
This afternoon, the US president and his secretary of state Hillary Clinton called another meeting with China, but were snubbed again when only three low-level Chinese delegates arrived.
China has no intention of really limiting its economic development and growth by signing on to a “carbon-emissions” agreement that isn’t lopsided in its favor. And they indicated that diplomatically in an extremely insulting way. There was not even a token gesture to preserve face for President Obama and America.
Even the much-touted “breakthrough” agreement among world leaders only came about, according to Reuters sources, because President Obama and Secretary Clinton broke in on a meeting between Premier Wen and leaders of Brazil and India–a private meeting in Wen’s hotel room that Obama had not been invited to attend. China publicly treated The Great One’s efforts as beneath their notice.
Combine that with a statement also made yesterday by an official of the Chinese government-controlled Central Bank of China, and you have a definitive vote against outrageous expenditures like ObamaCare:
“The United States cannot force foreign governments to increase their holdings of Treasuries,” Zhu said, according to an audio recording of his remarks. “Double the holdings? It is definitely impossible.”
“The US current account deficit is falling as residents’ savings increase, so its trade turnover is falling, which means the US is supplying fewer dollars to the rest of the world,” he added. “The world does not have so much money to buy more US Treasuries.”
In plain language, that means that since the U.S. economy is still so bad and real unemployment still so high, fewer Chinese goods are being imported and China therefore has less deflated U.S. dollars to give back to America in return for U.S. Treasuries. China has been willing to buy our notes with depressed-value dollars up until now because they believed that, in the long run, our economy would improve and the Treasuries would be worth a lot more 30 years down the road than our dollars are currently worth. And the game benefited them doubly because it kept their own manufacturing economy increasing and fueled expansion of their domestic economy.
That is no longer true. Not for China, and not for the rest of the world. The single-minded fixation by the Democrats on passing the most expensive domestic entitlement program in history during the worst economic downturn since the 1930s offers final proof that the U.S. government is is going to continue on its path to economic ruin.
With the ever-increasing printing of paper dollars by the Obama Treasury Department–constantly diluting the value of our currency–and the ever-increasing irresponsible spending by the Democrats controlling the House and the Senate, long-term prospects for our economy are no longer looking good to overseas investors. The game no longer looks like a winning one for China, or for anyone else.
Since we are importing less merchandise, we are not as important a trading-partner for China as we once were. Since we are spending ourselves into bankruptcy and national default, we are no longer a good credit risk for them. So they see no reason to continue to prop up our economy by continuing to buy long-term U.S. Treasury notes.
The “unlimited” well of money that our government has been borrowing from China, our biggest lender, is about to dry up. And no matter how bad the ObamaCare bill is for America, the destruction of the U.S. dollar, continuing runaway spending driving the deficit up to astronomical, impossible levels, and loss of global confidence in the future of our country is even worse.
If you thought the last two years were bad economically, you don’t really want to know what the next two years have in store for us. Government actions to prevent panic, restore confidence and keep the system from collapsing only work when the populace believes that its leaders are responsible and know what they are doing. The ObamaCare fixation, the mania to pass a health care bill, any health care bill, in the face of nearly two-to-one disapproval by voters, the lack of any short-term benefits for the average person, and the obvious massive fiscal irresponsibility and malfeasance–is going to destroy what little confidence is left in America’s economic stability.
Wait until the holiday sales numbers come in if you don’t believe me. Wait until the seasonal layoffs and more business closings start to impact unemployment in January, February and March. Wait until panic begins to set in on legislators up for re-election next Fall who are desperate to do something to justify being sent back to Washington.
In historic terms…next year is 1930 all over again. The worst is yet to come.