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The borrower becomes servant to the lender

While we’re talking about the debt crisis, I thought you might like to know what our principal creditors are saying about us.  And that would be the Chinese.  They seem to be expecting an equity swap to settle our debts.  The American federal government came into possession of a gigantic pile of stocks with the various financial bailout programs.  And remember, there are trillions of dollars out there for which no public account has ever been given.  Were those dollars used to inflate the stock market by buying up sagging stocks?  The Chinese seem to think so, and they’re suggesting that a good way to settle America’s massive debt to them might be for Uncle Sam to hand over ownership of all those American companies to China.  Read about it in the People’s Daily.  So General Motors could become General Mao-tors.  Or something like that.

Congressional incapacity to say no to America’s burgeoning parasite class is getting to be a bigger problem than anyone foresaw.  It is not in China’s interest to push the United States into default.  China would prefer a prosperous USA as a customer for its goods.  But if the Chinese can’t have that, it seems they might be willing to settle for a really big piece of the American pie.  Maybe it would be interesting to see the Chinese deal with the UAW for a while.

You’re thinking the same Congress that lacks the courage to refuse American borrowers will man up and refuse Chinese lenders?  Color me skeptical.

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