Senator Charles Schumer let loose a very reckless and bombastic tirade against China – his way of diplomatically receiving China’s unelected President Hu.
The message to Hu is “we are fed up with your government’s intransigence on currency manipulation. If you refuse to play by the same rules, we will force you to do so,” Schumer said in a conference call with reporters. [via Instapundit, Points and Figures]
If politicians are so damned fed up, why don’t they stop taking China’s loans?! Schumer, stop borrowing from them if you are so true to your words.
We wonder how this must look to the rest of the world, especially to those that might buy our debt in the future – when China has finally had enough of us.
Put another way, if America loaned trillions of dollars to Russia, and then Russia began lecturing us about monetary manners (just months after having expanded liabilities to proven unsustainable heights), we would openly mock them on our late night shows for being a banana republic.
Put yet another way, could you imagine talking to your credit card company this way? Sure, their rates and their fees are borderline abusive, but if you don’t want the credit card company to revoke your line of credit, you keep it civil. That, or you put your spending habits where your mouth is and you cut up your credit cards.
It’s like our entitlement society has created an entitlement government which is living under the delusion that we are entitled to continued financing by our investors, no matter how we treat them.
China may be a despotic Communist regime, obsessed with its brand of “social justice” (delivered at the barrel of a gun), but that doesn’t give us license to treat them with disrespect. Our government sold them our bonds knowing exactly who and what they are. Now we must man up and honor our debts. If we need to ask for help restructuring our debts, or if we hope to attract others to buy our debt, we would be better served if we didn’t earn a reputation as reckless, whining bullies.
Would you loan money to a reckless, whining bully?