China Emerges As Economic Powerhouse
CBS Evening News: Washington Has Borrowed $1 Trillion From China As Economies Become Increasingly Linked
BEIJING, April 2, 2009 | by Barry Petersen
(CBS) China is roaring. It holds a trillion dollars of U.S. government IOUs - more than any other country.
The IOUs were loans to the United States that funded America's high spending lifestyle, reports CBS News correspondent Barry Petersen. If China stops loaning money, that lifestyle is doomed.
"Unfortunately, average Americans are going to see a decline in their standard of living," said Peter Schiff, the president of Euro Pacific Capital. "We have simply squandered our wealth. We've been living beyond our means for years and borrowing to do it and now we can't pay the bills."
A sign of China's rise: Its prime minister recently lectured the United States like a first world country nervous about the health of a third world economy.
"Request the U.S. to maintain its good credit and guarantee the safety of China's assets," Wen Jiabao said.
The IOUs were loans to the United States that funded America's high spending lifestyle, reports CBS News correspondent Barry Petersen. If China stops loaning money, that lifestyle is doomed.
"Unfortunately, average Americans are going to see a decline in their standard of living," said Peter Schiff, the president of Euro Pacific Capital. "We have simply squandered our wealth. We've been living beyond our means for years and borrowing to do it and now we can't pay the bills."
A sign of China's rise: Its prime minister recently lectured the United States like a first world country nervous about the health of a third world economy.
"Request the U.S. to maintain its good credit and guarantee the safety of China's assets," Wen Jiabao said.
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my comment:
It is in the best interest of the American people to realize that if we continue on the path we are on, the future is not healthy fiscally for a long long time, unless we make our economy strong once again by implementing a tax structure change to the consumption tax and get back the jobs we have shared with the world and have essentially brought them into the 21st century. If America is stable the American Dollar is stable.
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Hey George!
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