Mark West
More than they need us
By Mark West
"Hezekiah had exceeding much riches and honor: and he provided him treasuries for silver, and for gold, and for precious stones, and for spices, and for shields, and for all manner of goodly vessels; store-houses also for the increase of grain and new wine and oil; and stalls for all manner of animals, and flocks in folds." 2 Chronicles 32:27-28
Did you worry about something, anything at all this week? If so, you're in the majority! Personally, I struggle with a lot more worry than I like to admit.
Yet, it's one thing to hear a "nobody" like me admit my own worry. However it is extraordinary to hear national leaders make such an admissions? If you heard such would it grab your attention?
Just below the weekly headlines was a story out of China that merits a moment of our time. Premier We Jiabao of China said, "To be honest, I'm a little bit worried," when asked about his concern over the safety of their national assets.
Did you know that it is estimated that China keeps $2 trillion (nearly half) of its foreign currency reserve in United States Treasuries...that's right...$2 trillion in our currency.
China's worry has transitioned into a national debate centering on whether China can afford the risk of keeping and purchasing more reserves into U.S. Treasuries.
Do I need to remind you of the trillions (with a 't') that have been flying out of D.C. lately. If China won't buy, our plans won't thrive! It's unfortunate but not surprising that the major media outlets barely mentioned this item. Outside of financial media, they just don't get it! Makes me think of that cheek zit I missed on prom night.
Money must have backing! Even Monopoly money eventually runs out. China's admission of worry ought to hit the American psyche with a resounding thud!
Our currency, you know, that stuff you buy stuff with, is technically backed by products, but is practically issued by fiat or "decree." A huge difference remains between theory and practice. We are a practicing fiat economy. China is catching on to that and threatens to pull the proverbial rug of financing from beneath our feet.
We may be in economic distress, but if China pulls out, we will be in an economic quagmire far worse than the great depression. Thanks D.C.!
We need China to ante up with hundreds of billions more U.S. Treasuries...but we've got to be willing to match their bet! If our currency isn't a safe bet we can be sure that China will pull back and this contraction will become a depression.
© Mark West
March 15, 2009
"Hezekiah had exceeding much riches and honor: and he provided him treasuries for silver, and for gold, and for precious stones, and for spices, and for shields, and for all manner of goodly vessels; store-houses also for the increase of grain and new wine and oil; and stalls for all manner of animals, and flocks in folds." 2 Chronicles 32:27-28
Did you worry about something, anything at all this week? If so, you're in the majority! Personally, I struggle with a lot more worry than I like to admit.
Yet, it's one thing to hear a "nobody" like me admit my own worry. However it is extraordinary to hear national leaders make such an admissions? If you heard such would it grab your attention?
Just below the weekly headlines was a story out of China that merits a moment of our time. Premier We Jiabao of China said, "To be honest, I'm a little bit worried," when asked about his concern over the safety of their national assets.
Did you know that it is estimated that China keeps $2 trillion (nearly half) of its foreign currency reserve in United States Treasuries...that's right...$2 trillion in our currency.
China's worry has transitioned into a national debate centering on whether China can afford the risk of keeping and purchasing more reserves into U.S. Treasuries.
Do I need to remind you of the trillions (with a 't') that have been flying out of D.C. lately. If China won't buy, our plans won't thrive! It's unfortunate but not surprising that the major media outlets barely mentioned this item. Outside of financial media, they just don't get it! Makes me think of that cheek zit I missed on prom night.
Money must have backing! Even Monopoly money eventually runs out. China's admission of worry ought to hit the American psyche with a resounding thud!
Our currency, you know, that stuff you buy stuff with, is technically backed by products, but is practically issued by fiat or "decree." A huge difference remains between theory and practice. We are a practicing fiat economy. China is catching on to that and threatens to pull the proverbial rug of financing from beneath our feet.
We may be in economic distress, but if China pulls out, we will be in an economic quagmire far worse than the great depression. Thanks D.C.!
We need China to ante up with hundreds of billions more U.S. Treasuries...but we've got to be willing to match their bet! If our currency isn't a safe bet we can be sure that China will pull back and this contraction will become a depression.
© Mark West
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