I stand corrected. While China is THE largest foreign purchaser of US debt, Russia is not second. Not even close. Japan is surprisingly #2, and #3 is Ireland??
Can we afford to go to war with China, if it comes down to it? I’m assuming that economic incentives are off the table with wartime enemies. The money we would need to pay for the war would effectively have to be underwritten by our largest debtors. Why would China help pay for a war against itself?
And not even just a military war. What if our trade war gets out of hand (which it does seem less impossible as time drags on)? I genuinely think it’s that leverage that silenced DJT’s accusations of currency manipulation. Based on an article that I posted a little earlier, we cannot weaken the Yuan without also weakening the USD, and yet, the current policies of both countries are bolstering jobs in China while ruining jobs in the US. Which makes it even more absurd that our President has offered assurances to China to help robust brands like ZTE while getting into pissing contests with American brands like Harley Davidson, Carrier, Amazon, and others.
Russia’s economic position may jockey up quite a bit in the future. As the USD is chipped out of the global economy as a de facto trading currency, Russia and China have been quick to position their own in its place, as well as flexing economic muscle in those markets. Russia and China have been making huge strides together in lunar exploration, even though it’s not well-covered in Western media. It is estimated that the vast untapped Helium-3 reserves on the moon are worth trillions to whoever gets to mine it. Personally, I think that the recent surprise announcement about Space Force is our current President’s attempt to strongarm our way into the space race, rather than pioneering our way back to the forefront. But that’s another post for another day.
Today, I’m concerned about our debt. Based on recent developments, are we REALLY trying to Make America Great Again? Or are we simply paying the price so the rich can get even richer on an unprecedented scale?