Things Senators Wonder
Shouldn't Coburn have asked this question already?
Via those "fair & balanced" fuckers at FOX:
China is one of the biggest economies in the world and grew at more than 9 percent over the last year. It also has loaned more than $1 trillion to the U.S. to fund its deficit-spending.
But at the same time, the U.S. sends foreign aid to China, which lawmakers of all stripes say is just plain nuts.
"Why in the world would we be borrowing money and then turn around and giving it back to the countries that we're borrowing it from?" Republican Sen. Tom Coburn of Oklahoma said. "If they have enough of a surplus to loan us money, they have enough of a surplus to take care of their own needs."
"I think the Chinese are just laughing whenever they receive a check," said Dan Ikenson, a trade economist at the CATO Institute. "How silly this is of the United States to be subsidizing the faster-growing, second-largest economy in the world."
I wouldn't call it subsidizing. In exchange for tens of millions of dollars, we dilute their much larger forced investment in our financial future by printing up more dollars to create this aid. They are aware we're doing this but as long as they keep shipping us cheap crap, we'll keep shipping them our garbage, products to bootleg and dollars. Since China is in on the money laundering scam, they're not about to pull out.
Meanwhile, in Europe:
The European Financial Stability Facility will be worth $1.4 trillion after European leaders agreed to leverage existing guarantees by as much as five times, Sarkozy estimated when speaking to reporters at a briefing in Brussels at 4 a.m. local time after the end of a summit of European leaders. Chinese support for the effort would be welcomed, Sarkozy said. The presidents will speak about noon Brussels time, he said.
Chinese Premier Wen Jiabao has signaled willingness to aid the European Union as financial turmoil within the region threatens to crush export demand in China’s biggest market. The expansion of the rescue fund and a deal for bondholders to take 50 percent losses on Greek debt may help Sarkozy and German Chancellor Angela Merkel to convince the world that Europe is getting to grips with the crisis.
“China will need time to evaluate this plan very carefully,” said Shen Jianguang, a Hong Kong-based economist for Mizuho Securities Asia Ltd. “What worries China is that there is so much disagreement among European policy makers. It doesn’t want to be seen spending money on a plan that even Europeans don’t want to support.”
You know how we could solve this global economic malaise almost instantly? If we all stopped borrowing money from each other.