Iraq is nearly over. BTW we won.

[Shawnee123]

Originally Posted by tw

China has long believed they were being helpful by returning boatloads of dollars to America by buying US government bonds. Unfortunately, this has further made Cheney, et al feel that massive deficits don't matter. If China did not buy so much American debt, then Cheney, et al would have to come to grips with a government without cash.

Well, the Highway Trust Fund has already been so depleted and having trouble meeting next month’s payments. States are complaining that Highway fund payments are no longer arriving in a timely manner. Even with China, et al massively buying American government debt, the government was still having cash flow problems in some locations. What happens if foreigners stop financing the George Jr administration? Well what do we stop funding? Infrastructure and education - or troops on the other side of the world?
The reason that George Jr (Cheney) could spend like drunken sailors? China, et al made Enron style accounting appear to be balanced. Without China, et al, the American government could not spend $2 trillion to bail out Wall Street.

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My question is, and I am starting out professing I am no expert on this subject, what happens when China calls in the loans? Are we really immune to a takeover? Will China own us?

Also, why did everyone in the know walk around with their heads up their asses until the crisis got THIS BAD? Why is this typical of the Bush administration? Until things hit rock bottom, they're counting birds in the sky or something.