Monday, March 14, 2005

Debt Threat

The Moose wonders when the right is going to be up in arms about the Red Debt Threat.

Morning newspapers report on renewed Communist Chinese threats against Taiwan. The Washington Post,

"China's parliament enacted a law Monday authorizing force to stop rival Taiwan from pursuing formal independence, sparking outrage on the self-governing island and warnings that the measure would fuel regional tensions.

"The ceremonial National People's Congress passed the law despite U.S. appeals for restraint. It came a day after President Hu Jintao called on China's military to be ready for war and followed a 12.6 percent increase in the country's defense budget for 2005."

Perhaps this is just verbal warfare that will never translate into an actual military action. However, if it did, the U.S. response may be constrained by a fiscal reality - America is increasingly a debtor to those very same Communist Chinese. It is an irony indeed that the conservative Bushie tax cuts for the wealthy are assisting their class enemies!

Yesterday's New York Times Magazine contained a rather complacent view of the China debt.

"Let's translate that into political terms. In effect, the Bush administration's combination of tax cuts for the Republican ''base'' and a Global War on Terror is being financed with a multibillion dollar overdraft facility at the People's Bank of China. Without East Asia, your mortgage might well be costing you more. The toys you buy for your kids certainly would."

However, the writer, Niall Ferguson indicates that it is in the Chinese interest that the dollar not slide so America can buy their exports. But, the Moose asks what if the rulers of China decide that they can, in effect, hold a threat of economic blackmail to stop American efforts to defend Taiwan?

It is clearly in our national security interests that we not be vulnerable to such a possibility. While the Bushies today suggest that they are concerned about the deficit, they its architects. The question is why Republican hawks have been so quiet about the irresponsible Bush fiscal policies that both make it difficult to expand the military and give aid and comfort to a potential foe?

The Bush debt is downright unpatriotic!
-- Posted at 2:01 PM | Link to this post | Email this post