Is borrowing to finance our large deficits preventing us from negotiating effectively with other countries?

Question

We have to depend on them financing us.
Can we place demands on them?

Answer 1

Most definitely. There can be no doubt about it.

Testifying before the Senate Finance Committee in 1990, then Chariman of the Federal Reserve Board, Alan Greenspan stated (under oath) that the national debt was the greatest single threat to America's national security.

Most people don't know this about the debt; but actually the vast majority of it is paid off (and then re-engaged) every 90-120 days. The T-Bills purchased in large quantities by foreign governments are usually turned into new bonds in a practice known as "Rollover."

Many nations (particularly oil rich nations in the Middle East) have used this Rollover threat to bargain for arms sales and other benefits. Greenspan knew this, and was alarmed.

In fact the practice goes back to the early 1980s when the nation was in recession and the Democrats in Congress brokered a deal with Republican President Reagan. President Reagan was adamant about tax cuts and a reivigorated program of military spending, while the Democrats were just as adamant that social programs not be cut, but instead, expanded.

To meet both objectives, both the Democrats and Republicans agreed to a dramatic increase in borrowing. This necessitated the selling of increasing amounts of America's debt to foreign nations. A full 75% of the nation's total federal debt load was created during the 16 years from 1981-1997. That's a staggering fact, but true.

This isn't a problem that can be laid at the feet of one party or one President. This was a bipartisan exercise in fiscal imprudence. It was a long term mortgaging of the nation's security for the sake of short term political benefits for both parties. And if more people cared and took the time to understand what was done to their and their children's futures they'd have a collective nervous breakdown.

Hope this helps. Cheers, mate.

Answer 2

The Bush family has had 'cozy' ties to China and Saudia Arabia for years - even decades. Now that has put the U.S. in a perilous position. China is our #1 creditor, and it's only a matter of time before China cuts up our national credit cards. What happens then?
The U.S.A. will be in the same situation Russia finds itself in today: broke and unable to maintain a military. Once the U.S.A. is in a similar circumstance, China will simply send its three-million-man Army over here and take whatever it wants: our natural resources (coal, gas, oil, water, trees); banks; military hardware; real estate; factories; weapons of mass destruction - even our women if there's a strong demand for western females on the international sex slave market. China has patiently waited for America's greedy, arrogant, corrupt politicians to put us into this position. It's now only a decade or two away - or, at the very best, no more than a generation, until China becomes the world's super power and the United States becomes a third-world country just as Haiti and the Dominican Republic are today, where there's a handful of the very, very rich and the rest of us - the very, very poor. -RKO- 06/02/07

Answer 3

very few could have examine this questions and extremely few replied it however i'm additionally between them a citizen of usa earlier an Indian as we can't stay a citizen of two countries because of the fact being American resident we're not to any extent further Indian yet we are able to bypass to our mom land for ever and are loose to stay there too loosing all advantages if we live longer i think of , each physique loves peace and hate a place the place there is not any protection . when I see terrorism is a international issue each physique could play his or her functionality . whilst Malala a muslim lady can combat for education of ladies ,whilst a infant needs his or her freedom a terrorist lives in terror and not loose from its consequences ,an afternoon might come whilst human beings might come forward to wipe it from human minds in spite of the undeniable fact that that's merely too overdue already , there are one in each of those great style of potential of destruction to wipe total humanity if needed action isn't taken quicker . i'm too small to take any action ,yet all style of violent videos could be faraway from media so as that we don't have get entry to to them by any potential . human beings can lease merely about all those video clips for couple greenbacks and arise to combat with kinfolk then to next neighbor then at artwork then someplace at finding out to purchase mall ,then anyplace he does not think of acceptable led to with the help of media and aspects he can get entry to from cafes and famous man or woman greenback who provide this freedom so definitely . Then we try to calm the suggestions that's already bombarded with lots damaging suggestion international .

Answer 4

EXACTLY!Can we demand anything from those to whom we owe do much?

Answer 5

No and yes. Your second statement is incorrect.