Ryan Avent says our Chinese overlords think the deficit should take a back seat to job creation, and Republicans need to stop screwing around and raise the debt ceiling:
One thing seems clear: America’s government is making its economic road harder than it needs to be. Debt problems loom, but there is no immediate fiscal crisis and no need for drastic short-term cuts. When debt issues came up during my trip to China, officials had a consistent message: China is a patient investor. It wants America to take steps toward fiscal sustainability, but it’s happy to have this happen over a 5- to 10-year period. By cutting drastically now, America is undermining its economy for no good reason.Treasury yields tell the tale; they continue to tumble. The yield on the 10-year Treasury fell below 3% on today’s bad economic news. Treasury yields have fallen on reduced American economic prospects, but they’ve also moved down as part of a broad flight to safety. Trouble in Europe and a slowdown in Asia have made the safe haven of American government debt more attractive. Which makes the tussle over America’s debt ceiling look even more unnecessarily dangerous. The other consistent message from Chinese officials on debt matters was that any failure to make good on American obligations would be catastrophic. Even a very short disruption in payments, of a week or two, would be totally unacceptable.
Great post Jon – shows very clearly the incredible level of danger to be beholden to China as we currently are.
The path you recommend makes us more beholden and will weaken us dramatically.
If China were as patient as Mr. Avent states, they why would a week or two delay, with the result positive, create even a hiccup?
You really need to develop critical thinking skills.
Stop spending MY money, Jerk.
Your Daddy,
HU
It doesn't weaken us. If our economy starts growing faster because of more stimulus, our deficit (and our reliance on China) shrinks. A faster growing economy can pay down its debts faster. Muddling through, as you prefer, keeps us indebted for longer.
Damn you are naive. If George Soros could manipulate entire markets (guilty by the way), what do you think China could do to us?
By the way, have you read the Obama plan? Deficits through at least 2020. The only time in recent memory that we paid down the national debt was during the Clinton years where the branches of government were divided and had to work together.
Something Chicago huckster Obama is incapable of.
And you do realize how deficits and debt work together? You know, how a smaller deficit still results in debt going up? And reliance on China continuing?
Just wanted to make sure.