During President Obama’s trip to China, he was questioned about the cost of the healthcare reform that he is pushing through by Chinese journalists (Hard questions for the president are something refreshing, especially from somewhere like China. It’s also a bit hypocritical that he lectured them on censorship when he censors his own questions and when US press censorship runs rampant). The Chinese were rightfully concerned about the cost of this new proposal as they are, by far, the number one buyers of US debt. Despite the phony numbers being thrown around by the left, the Centers for Medicare and Medicaid Services delivered a “deathblow to Obamacare” showing that costs will increase and people will lose insurance, among many other travesties.
With increasing pressure from Beijing to stop the reckless spending, the US is quickly running out of options. Paying all of the debt back would require massive tax hikes and drastic cuts in governmental programs (something which I certainly do not object to). If nothing is done soon, the US will be forced to repudiate its debt. This would leave China terribly angry and the US government with hardly a speck of credibility.
Unfortunately, I think we’re well past this point. The only question now is, chapter 7 or chapter 11?Published in