To Sell America
Foreigners have been snapping up US companies at the fastest pace in5 years, but the United States is not just selling off buildings, brand namesand critical infrastructure－It’s also selling off its financial independence. The United States isbecoming more in debt to foreign governments.
In effect, what’s going on is that we are selling our country to theChinese, Japanese and Europeans and others, bit by bit, and it’s an incrementalprocess.
In 2001 the outstanding federal government debt topped 3 trilliondollars, 30% of that held by foreign lenders according to the Economic PolicyInstitute. Since then the debt has grown another 1.3 trillion dollars, withforeign lending accounting for 80% of the new debt, leading the pack of thosethe United States owes money to -- Japan and China.
“We are gonnabe subsidizing the Chinese government to the tune of 50 or 100 billion dollarsa year now , and that total could easily double over the next 4 or 5 years.”
With rising interest payments that means more money leaving USshores and less money for US citizens , for schools, health care and roads.
Say, if we were sitting around the household, we would say, eachyear we were spending 107 dollars and only making 100 dollars, and that wouldbe a problem ,and that is really what we are doing as a country as a whole.
Economists agree this is not sustainable, but tell that to Congress.So far, there has not been the political will to rein in the budget and tradedeficits.
Treasury Secretary John Snow cancelled a trip to Africa this week tolobby Congress to raise the federal debt limit. Some lawmakers want to attachconditions to the limit increase. One amendment would set up a “pay as you go”measure, that would force lawmakers to pay for future budget increases or taxcuts.
Lisa Sylvester CNN, Washington.