Yesterday in the Washington Times there was an article about how the Chinese see the U.S. debt as a weapon. It was quite the formidable threat.
Gen. Luo warned that China could attack the U.S. “by oblique means and stealthy feints,” and he called for retaliation for the arms sale.
“For example, we could sanction them using economic means, such as dumping some U.S. government bonds,” Gen. Luo said.
“Our retaliation should not be restricted to merely military matters, and we should adopt a strategic package of counterpunches covering politics, military affairs, diplomacy and economics to treat both the symptoms and root cause of this disease,” said Gen. Luo, a researcher at the Academy of Military Sciences.
China holds nearly $800 billion worth of Treasury debt securities. It is not clear what impact selling off some of the securities would have on the struggling U.S. economy. However, analysts say that selling off some bonds could drive up interest rates and disrupt U.S. economic recovery efforts.
Yet Congress and the President continue to have an addiction to spending. If we don’t stop spending we will crash our economy. The U.S. has been the mastermind of economic sanctions. If we aren’t careful, we will find ourselves in the same situation…and we will have given them the power to do it! The last thing we need is a foreign policy approach that is beholden to our financial debt. Good grief!