Posted by
Buster Foghorn on Thursday, January 27, 2011 9:58:04 PM
President Obama fetes Chinese President Hu Jintao with a State dinner at the White House, including entertainment by a Chinese pianist playing a propaganda song “My Motherland” – music a half-billion Chinese connect to an anti-American movie about the Korean War, a 1956 movie that celebrated killing Americans and calling them “Jackals”.
China and our “mountain of debt” were two items mentioned, during his State of the Union address, by the President. About our debt he said: “Now, the final step—a critical step – in winning the future is to make sure we aren't buried under a mountain of debt.” Never one to be humiliated—even when it might have been intended—President Obama gave a special “shout-out” to China.His kudos to China drew a strong rebuke from … “the Donald”. Trump is so upset about how we are being ridiculed by the Chinese behind our backs that he just might run for President. Could it be that he wants to meet Mr. Obama in a Presidential debate and say: “You’re fired!”
Why do the Chinese feel about us as they do? Since they are our bankers, holding “nearly half the $2.37 trillion stock of Treasury debt held by 'foreign official' owners,” could they think they own us? Is there a way to put Chinese arrogance back in the bottle and more favorably allocate our national debt?
Two headlines report Social Security in critical condition: Social Security now seen to run permanent deficits... and $45 Billion in red for '11... Is there a way to “fire our Chinese bankers” and solve the social security problem?
President George W. Bush warned us about the crisis we faced with Social Security, but Democrats rejected his idea of personal accounts, arguing that investing in the stock market was a “risky scheme.” But if President Obama wanted to lead, he could have a “Nixon to China” moment. He could lead his party in strengthening Social Security by allowing Americans to be America’s bankers: Every employee paying into Social Security should be able to allocate some percentage of his account to the purchase of Treasury bonds, replacing and reducing the amount held by foreign countries. What would it take to reduce the percentage of debt held by China and other countries whose loans influence our foreign policy: How long will we continue to turn a blind eye to China’s human rights violations, China’s piracy of our patents, China’s duplicitous foreign policy towards North Korea and Iran?
Mr. Obama could lead his party, while addressing all of his State of the Union concerns about Social Security reform, with a “solution to strengthen Social Security for future generations”: Allow Americans to buy U.S. Treasuries for their Social Security account and tell our foreign bankers: “You’re fired”! President Obama would get Republican support. And since Treasuries are not as risky as common stock, he could overcome Democrat arguments used against President Bush.
It would be a win-win: We could create real lockboxes, taking away the temptation for Congress to spend future Social Security funds; we could allow Americans to invest in America, giving American’s more control over our future; we could pay off foreign borrowers who are adversely impacting our foreign policy because we are so indebted to them.
Does President Obama really want to get the policy right, as he said? Does he really care more about doing the right thing than getting re-elected, as he said? Is he really open to good ideas that would address our “unsustainable debt,” as he said? This is his chance to lead or as the President might say: “This is his moment.” Is he is up to the challenge?