the world as it is//While You Were Sleeping…

While you were sleeping…
China ousts Japan, owning the most U.S. debt:
China passed Japan to become the U.S. government’s largest foreign creditor in September, the Treasury Department announced yesterday, reflecting the dramatic expansion of Beijing’s economic influence over the American economy.
China’s new status — it now owns nearly $1 out of every $10 in U.S. public debt — means Washington will be increasingly forced to rely on Beijing as it seeks to raise money to cover the cost of a $700 billion bailout. China, in fact, may be the government’s largest creditor, period.
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The growing dependence on Chinese cash is granting Beijing extraordinary sway over the U.S. economy.
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“This is an unhealthy relationship,” said Brad W. Setser, geoeconomics fellow at the Council on Foreign Relations. “The U.S. relies too heavily on subsidized financing from a non-democratic government. And China is still a poor country that has in turn invested too much of its national savings in the United States. There remains an underlying financial vulnerability if China were to scale back its purchases. It could deliver a shock to the United States.”
And also… something else you may have missed:
China extends interests to Latin America
Two areas of great interest to China are Central and South America, and Chinese investments in that part of the world are rapidly expanding. Just this week, Chinese president Hu Jintao met with the Costa Rican president Oscar Arias to discuss new business ties.
China’s rapid advances into the African continent have already been well documented, so it comes as no surprise that they continue to push westward to expand their reach and influence. We (the USA) may be the world’s military power (I suppose we should be since we spend more than most countries, if not all others, on defense), but our economic power on the global stage is weakened, given the above news. There’s a saying that goes something like this: “He who controls the money, rules the world.”
The “Super Power” days of the US of A are numbered. In fact, the fat lady may have already begun singing…
And that may not be such a bad thing.













