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You can thank, as a huge player in engineering this China-U.S. Ponzi scheme that has all but sunk the USA, former president George W. Bush and his lackey Republican party for the mess the USA is now beginning to experience in its souring relationship with China.
George W. Bush made a deal with the devil to have China finance our hemmorhaging money for the War in Iraq and the Windfall Tax-cuts for the super rich. He did it by allowing the US to massively borrow from China. In return China was allowed to dump cheap goods on the US market and it got US jobs which the Republicans allowed to be outsourced so China could fuel its economic expansion. it was a temporary win/win until the house of cards collapsed.
Bush created a sort of Ponzi scheme in which China would use the savings generated by its vast workforce so China could buy US Treasury bonds and holdings in US firms like Fannie Mae and Freddie Mac and finance the massive US debt Bush was running up. Then, when the banking crisis hit, and China got burned on what it thought were secure investments, the USA found that its credit bubble collapsed and the US also reached the end of its easy credit with China. The Bush Administration did most of this damage to create a phony temporary prosperity in which he could tamper with the Constitution, push his 'war on terror' and with the collusion of the jingoistic Republican controlled Congress he could just spend and spend and spend on this g.d. war and lavish deregulated largesse on all of his (Bush's) Wall Street cronies.
Of course, to be fair, there were key Democrats, like Robert Rubin and Geithner and others who are key advisors now in the Obama Administration, who also had their hands in the Wall Street till.
Meanwhile, the American consumer was encouraged by Bush to 'become home owners' while Alan Greenspan pushed easy credit and the Fed kept interest rates artificially low just so people could buy and buy and buy way beyond their means.
America shed good manufacturing jobs and wealth and borrowed from China to cover up the downturn in national wealth. Easy foreign credit masked growing American impoverishment just so Bush could hide the pain of the debt he was running up financing the Iraq War and his 'war on terror'. His policies also degraded US credibility worldwide and HELPED the terrorists recruit more fanatics.
Now that the 2000-2008 eight year old Ponzi scheme has collapsed, the Republicans who had a huge hand in engineering this mess now hypocritically want to micro-criticize Obama's performance with only three weeks in office and want to pick apart his plans for recovery and parse his attempt at stimulating a weak economy.
Obama is doing what he can to fix the mess Bush left who waltzed out of office and let the deluge fall on all the rest of us. And what is outrageous is that he's going to get away scott free with all of his crimes (Bush will) because the GOP and its allies among the super rich will protect this monster from prosecution.
We have to take a harder stance against China for its unfair trade surplus and its manipulation of its currency. We have built China's factories and economy by purchasing huge amounts of goods and outsourcing our manufacturing.
Now China is having a problem because the US is foundering. They could blackmail us big time but then they'd lose their biggest customer. It is absolutely tragic that this country is in the toilet due to a criminal president and vice president who foisted a no-good war on us, and due also to a handful of greedy Wall St executives and CFOs dreaming up these vague financial instruments.
Someone needs to be held accountable for screwing up the world's finances. Especially the guy who dreamed up credit default swaps. Obama and the SEC and the Treasury will have a tough fight on their hands with China but there HAS to be parity in the world and China is on a much higher level than most other countries.
The US needs to try and pay off China in the next 10 years and get them off our backs. It is glaringly obvious that being dependent on China and other countries for our debt is no good at all
