HillBillary's latest economic proposal is a doozy. She demonized Chinese and OPEC ownership of our foreign debt and proposed limiting their purchases of Treasury notes, bills and bonds.
First of all, the largest holders of U.S. Gov't securities are Japan and Great Britain. China currently holds about $500 billion worth. OPEC about $200 billion. The largest foreign investor in the U.S. is Japan. The total worth of the U.S. is currently valued at $64 TRILLION meaning China holds less than 1/2 of 1 % of our total worth.More importantly, it means we "own" them, not the other way around. It's like when you owe a million dollars to a bank, they "own" you. If you owe a billion, YOU "own" the bank. It means that in practical terms China and OPEC have a vested interest in a healthy American economy and a strong dollar. The LAST thing they want is to be paid back in devalued dollars.
Assuming she's serious ( and with her ignorance of basic economics, monetary policy and willingness to say anything to anyone; it's possible she is ) this would be an economic disaster. Limiting sale of our debt to only "friendly" nations will drive up interest rates by radically constricting the market.
Rubin and the rest of her Wall St. supporters, after regaining consciousness, will either have a long talk with Hillary or give Richardson a long hard look as someone to support instead.
What was she thinking ?






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