It is quite astounding that in the modern western world, a tendency to borrow more and more money in an attempt to keep up repayments on domestic sovereign debt has to be pointed out by the nation that is in fact lending them the money. China back in August 2011 was sited as stating that they were not satisfied with the US Debt Deal. The Chinese are not happy and one of their credit rating agencies went ahead and downgraded America's US treasury rating one week before S&P. China sees Washington's debt problems as a "debt bomb" and have stated that it intends on diversifying its holding away from the dollar. In brief China has little sympathy for the way the American government is managing its debt crisis and that the debt deal they signed was just another quick fix that did not do anything to alter the States addiction to borrowing money.
The problem is that China wants America to keep spending but only on things that brings them in the dollars. However, as China now owns a large part of the US treasuries, it means they may also have quite a lot of say as to how Washington may spend in the future and the one thing they appear to be dead against is the US spending money on their military. This is hardly surprising when you look closely at just what is happening in the South China Sea or the Taiwan Straits. America may find itself in sticky waters. Although Washington does claim not to be influenced by what the Chinese may think or like them to do, this could however, be a matter for debate.
China is no longer the second cousin to America, in fact the reverse is true. In the last ten years the nation's economy has outpaced Canada, Brazil and Germany to name but a few. China is today seen as an economic 'powerhouse' and the speed with which it is advancing and progressing is quite startling. China is expected to leave even Japan in its wake and is destined to become the second largest economy in the entire world just behind the US.
China's potential for dominance is of frightening proportions and it reaches far and wide. Manufacturing efficiency, a high speed rail technology second to none, construction of a nuclear power plant, clean air energy technology and even its education system is getting better by the minute. Because China has such a massive population it now also has the world's biggest Internet market as measured by the number of people using the Net. The astounding statistics that this only represents 22% of Chinas population makes it doubly impressive as this is versus 75% in the States. With this said China's state controlled internet companies are destined to become world leaders ahead of Google, Yahoo or any other Internet giants of the western world just by the sheer numbers of its' population.
Gone are the days of China being a country somewhere in the distance that time has forgotten. Foreign powers are turning to them for financial support and none more so that the US. This has led to many people in the US raising alarm bells and concern over the amount of American debt China holds. There are some who have not forgotten that China did have a reputation for using child labour and their human rights record has not been the best in the world. However, these same people have forgotten the situation in America at the beginning of this century when it too first started to develop into the powerful country it was to become.
American workers suffered through much hardship and this was especially true in the Great Depression which lasted a decade. China is just starting to make its presence known and the nation today allows its workers to form unions, go on strike to demand higher wages and work shorter hours in many of their factories. China is quite rigidly going through the next stage of their economic development and they are doing it extremely well. Well enough to be able to offer financial bail-out solutions for governments like those in Washington.
China holds this American debt because they can afford to and it is as simple as that. America is divided with petty arguments and squabbles at a time when they should be united. As Sam Houston stated in the US senate back in 1850 'A nations divided against itself cannot stand'. As such the US really does need to get its house in order, rethink their 'quantitive easing' solutions and get their economy back on solid ground instead of a debt based foundation that has been created over the last few decades. Today America stands as the largest creditor nation but they are also the world's largest debtor nation of which China holds the majority of American debt. Not a good situation for the average US citizen if we go into another great depression.
Teddy Roberts suffered the effects of the downturn first hand when he lost his job in 2009 and then lost pretty much everything after that. With a fair amount of time on his hands he read, read and read some more and became more and more angry at how the powers that be are printing money, rewarding risk and making the rich richer whilst the poor and middle class get poorer.
Having children he is particularly concerned about the debt legacy we will pass on to the next generations. Teddy created a blog where he distills his knowledge and compares the current economic climate to the great depression.
He also gives away a couple of complimentary eBooks on his blog http://whenwasthegreatdepression.info with in-depth analysis of the world economy and some useful historical facts which can help you determine what you should be doing with your spare time and money.
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Economics Article FeedFind More ArticlesSearchSimilar ArticlesA Few Historic Things About The Great DepressionThe Great Depression Of 2009Did The Great Depression Ever End?Current State of the Economy 2010What Exactly is a Recession?Economic Fortune Teller - A Look at This Coming Depression and a Huge Financial ReadjustmentGreat Opportunities For Solo Lawyers and Small Law Firms in the Current RecessionDepression Not a RecessionToday's Top Ten List - Why the Prospect of Another Depression Isn't the Least Bit FunnyCurrent Economic Depression Requires a Thoughtful Debt-Default by Next ElectionRecent ArticlesHow To Solve The Homeless SituationProgressivism Isn't Progress, VIIIHow Secure Is Your "Secure" Job?A True Comparison Of Increasing Debt Between Bush And Obama AdministrationsHow To Compete With ChinaWould Einstein Think Us Insane?What Will Happen If Greece Defaults?A Cluster of (Minor) ErrorsThe US Recovery Is Producing SurprisesA Sigh Of Relief For The Economic Status Of The USSubmitted On November 24, 2011. Viewed 11 times. Word count: 831.MLA Style Citation:Roberts, Teddy".".24 Nov. 2011EzineArticles.com.26 Jan. 2012
Roberts, T. (2011, November 24). . Retrieved January 26, 2012, from http://ezinearticles.com/?How-Much-Power-Does-China-Wield-Since-It-Owns-So-Much-US-Government-Debt-(Tax-Payer-Debt)?&id=6715262Chicago Style Citation:
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